In This Article:
Key Insights
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Given the large stake in the stock by institutions, Bilibili's stock price might be vulnerable to their trading decisions
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The top 9 shareholders own 53% of the company
To get a sense of who is truly in control of Bilibili Inc. (NASDAQ:BILI), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 43% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk).
Institutional investors would appreciate the 21% increase in share prices last week, given their one-year returns have been disappointing at 24%.
Let's delve deeper into each type of owner of Bilibili, beginning with the chart below.
Check out our latest analysis for Bilibili
What Does The Institutional Ownership Tell Us About Bilibili?
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.
We can see that Bilibili does have institutional investors; and they hold a good portion of the company's stock. 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 Bilibili's historic earnings and revenue below, but keep in mind there's always more to the story.
Bilibili is not owned by hedge funds. With a 12% stake, CEO Rui Chen is the largest shareholder. With 11% and 7.4% of the shares outstanding respectively, Tencent Holdings Limited and Alibaba Group Holding Limited are the second and third largest shareholders.
We did some more digging and found that 9 of the top shareholders account for roughly 53% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Bilibili
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.