Insiders appear to have a vested interest in YXT.COM Group Holding's growth, as seen by their sizeable ownership
62% of the business is held by the top 4 shareholders
Using data from company's past performance alongside ownership research, one can better assess the future performance of a company
Every investor in YXT.COM Group Holding Limited (NASDAQ:YXT) should be aware of the most powerful shareholder groups. With 36% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
So it follows, every decision made by insiders of YXT.COM Group Holding regarding the company's future would be crucial to them.
In the chart below, we zoom in on the different ownership groups of YXT.COM Group Holding.
NasdaqGM:YXT Ownership Breakdown November 17th 2024
What Does The Lack Of Institutional Ownership Tell Us About YXT.COM Group Holding?
We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.
There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. YXT.COM Group Holding might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
NasdaqGM:YXT Earnings and Revenue Growth November 17th 2024
Hedge funds don't have many shares in YXT.COM Group Holding. Looking at our data, we can see that the largest shareholder is Centurium Capital Management Ltd. with 18% of shares outstanding. For context, the second largest shareholder holds about 17% of the shares outstanding, followed by an ownership of 15% by the third-largest shareholder. Lu Xiaoyan, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. Additionally, the company's CEO Zu Teng directly holds 2.1% of the total shares outstanding.
Our research also brought to light the fact that roughly 62% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of YXT.COM Group Holding
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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems insiders own a significant proportion of YXT.COM Group Holding Limited. It has a market capitalization of just US$123m, and insiders have US$45m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 17% stake in YXT.COM Group Holding. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Private Equity Ownership
Private equity firms hold a 30% stake in YXT.COM Group Holding. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
Public Company Ownership
Public companies currently own 17% of YXT.COM Group Holding stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
