Individual investors who hold 50% of Xiabuxiabu Catering Management (China) Holdings Co., Ltd. (HKG:520) gained 20%, insiders profited as well

Key Insights

• The considerable ownership by individual investors in Xiabuxiabu Catering Management (China) Holdings indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 18 shareholders
• Insider ownership in Xiabuxiabu Catering Management (China) Holdings is 39%

If you want to know who really controls Xiabuxiabu Catering Management (China) Holdings Co., Ltd. (HKG:520), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual investors with 50% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors gained the most after market cap touched HK$1.3b last week, while insiders who own 39% also benefitted.

Let's delve deeper into each type of owner of Xiabuxiabu Catering Management (China) Holdings, beginning with the chart below.

View our latest analysis for Xiabuxiabu Catering Management (China) Holdings

What Does The Institutional Ownership Tell Us About Xiabuxiabu Catering Management (China) Holdings?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Xiabuxiabu Catering Management (China) Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Xiabuxiabu Catering Management (China) Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Xiabuxiabu Catering Management (China) Holdings. The company's CEO Kuang-Chi Ho is the largest shareholder with 39% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 4.6% of common stock, and Goldman Sachs Group, Investment Banking and Securities Investments holds about 1.9% of the company stock.

On studying our ownership data, we found that 18 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Xiabuxiabu Catering Management (China) Holdings

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of Xiabuxiabu Catering Management (China) Holdings Co., Ltd.. Insiders own HK$504m worth of shares in the HK$1.3b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 50% of Xiabuxiabu Catering Management (China) Holdings shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Xiabuxiabu Catering Management (China) Holdings you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.