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Key Insights

• Significant insider control over X Financial implies vested interests in company growth

• The top 3 shareholders own 52% of the company

• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in X Financial (NYSE:XYF) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 52% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

So it follows, every decision made by insiders of X Financial regarding the company's future would be crucial to them.

Let's delve deeper into each type of owner of X Financial, beginning with the chart below.

See our latest analysis for X Financial

What Does The Institutional Ownership Tell Us About X Financial?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Since institutions own only a small portion of X Financial, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Hedge funds don't have many shares in X Financial. Looking at our data, we can see that the largest shareholder is the CEO Yue Tang with 37% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 9.1% and 6.7%, of the shares outstanding, respectively.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of X Financial

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. 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.