Retail investors are Xiabuxiabu Catering Management (China) Holdings Co., Ltd.'s (HKG:520) biggest owners and were hit after market cap dropped HK$119m

Key Insights

• The considerable ownership by retail investors in Xiabuxiabu Catering Management (China) Holdings indicates that they collectively have a greater say in management and business strategy
• A total of 15 investors have a majority stake in the company with 47% ownership
• 39% of Xiabuxiabu Catering Management (China) Holdings is held by insiders

Every investor in Xiabuxiabu Catering Management (China) Holdings Co., Ltd. (HKG:520) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 53% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While the holdings of retail investors took a hit after last week’s 11% price drop, insiders with their 39% also suffered.

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

Check out our latest analysis for Xiabuxiabu Catering Management (China) Holdings

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

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Xiabuxiabu Catering Management (China) Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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.

Hedge funds don't have many shares in Xiabuxiabu Catering Management (China) Holdings. With a 39% stake, CEO Kuang-Chi Ho is the largest shareholder. Meanwhile, the second and third largest shareholders, hold 4.6% and 1.6%, of the shares outstanding, respectively.

A deeper look at our ownership data shows that the top 15 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Xiabuxiabu Catering Management (China) Holdings

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Xiabuxiabu Catering Management (China) Holdings Co., Ltd.. Insiders have a HK$361m stake in this HK$931m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public -- including retail investors -- own 53% of Xiabuxiabu Catering Management (China) Holdings. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for Xiabuxiabu Catering Management (China) Holdings that you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.