In This Article:
Key Insights
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Significant insider control over Futu Holdings implies vested interests in company growth
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The top 2 shareholders own 59% of the company
To get a sense of who is truly in control of Futu Holdings Limited (NASDAQ:FUTU), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 37% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
As a result, insiders scored the highest last week as the company hit US$13b market cap following a 6.3% gain in the stock.
Let's take a closer look to see what the different types of shareholders can tell us about Futu Holdings.
View our latest analysis for Futu Holdings
What Does The Institutional Ownership Tell Us About Futu Holdings?
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.
We can see that Futu Holdings does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Futu Holdings, (below). Of course, keep in mind that there are other factors to consider, too.
Futu Holdings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Hua Li with 37% of shares outstanding. With 22% and 3.4% of the shares outstanding respectively, Tencent Holdings Limited and Aspex Management (HK) Limited are the second and third largest shareholders.
To make our study more interesting, we found that the top 2 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Futu Holdings
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.