In This Article:
Key Insights
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Futu Holdings' significant insider ownership suggests inherent interests in company's expansion
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A total of 2 investors have a majority stake in the company with 59% ownership
A look at the shareholders of Futu Holdings Limited (NASDAQ:FUTU) can tell us which group is most powerful. The group holding the most number of shares in the company, around 37% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).
So it follows, every decision made by insiders of Futu Holdings regarding the company's future would be crucial to them.
Let's take a closer look to see what the different types of shareholders can tell us about Futu Holdings.
See our latest analysis for Futu Holdings
What Does The Institutional Ownership Tell Us About Futu 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.
Futu Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Futu Holdings' earnings history below. Of course, the future is what really matters.
Futu Holdings is not owned by hedge funds. With a 37% stake, CEO Hua Li is the largest shareholder. Tencent Holdings Limited is the second largest shareholder owning 22% of common stock, and Aspex Management (HK) Limited holds about 3.1% of the company stock.
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.
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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
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. 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.