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The big shareholder groups in Xtep International Holdings Limited (HKG:1368) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership.
Xtep International Holdings isn’t enormous, but it’s not particularly small either. It has a market capitalization of HK$9.5b, which means it would generally expect to see some institutions on the share registry. Taking a look at the our data on the ownership groups (below), it’s seems that institutional investors have bought into the company. Let’s delve deeper into each type of owner, to discover more about 1368.
Check out our latest analysis for Xtep International Holdings
What Does The Institutional Ownership Tell Us About Xtep International 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.
Xtep International Holdings already has institutions on the share registry. Indeed, they own 12% of the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at Xtep International Holdings’s earnings history, below. Of course, the future is what really matters.
We note that hedge funds don’t have a meaningful investment in Xtep International Holdings. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Xtep International Holdings
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own some shares in Xtep International Holdings Limited. This is a big company, so it is good to see this level of alignment. Insiders own HK$152m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.