In This Article:
Key Insights
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Kingsoft Cloud Holdings' significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
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55% of the business is held by the top 2 shareholders
Every investor in Kingsoft Cloud Holdings Limited (NASDAQ:KC) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 55% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And individual investors on the other hand have a 32% ownership in the company.
Let's take a closer look to see what the different types of shareholders can tell us about Kingsoft Cloud Holdings.
See our latest analysis for Kingsoft Cloud Holdings
What Does The Institutional Ownership Tell Us About Kingsoft Cloud 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.
We can see that Kingsoft Cloud 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. 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 Kingsoft Cloud 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 Kingsoft Cloud Holdings. Kingsoft Corporation Limited is currently the largest shareholder, with 41% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 13% and 9.6%, of the shares outstanding, respectively.
After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Kingsoft Cloud Holdings
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.