Kuaishou Technology (HKG:1024) stock price fell 10.0% last week; individual investors would not be happy
Every investor in Kuaishou Technology (HKG:1024) must know the most powerful shareholder groups. We can see that individual investors hold the lion’s share of the company with 36% ownership. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.
After a 10.0% decline in the stock price last week, individual investors suffered the most losses, but insiders who own 24% of the shares were also affected.
Let’s take a closer look at what different types of shareholders can tell us about Kuaishou Technology.
See our latest analysis for Kuaishou Technology
What does institutional ownership tell us about Kuaishou technology?
Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
Kuaishou Technology already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it is worth checking out Kuaishou Technology’s earnings history below. Of course, the future is what really matters.
Kuaishou Technology does not belong to hedge funds. From our data, we deduce that the largest shareholder is Hua Su (who also holds the title of Top Key Executive) with 11% of the outstanding shares. It’s generally considered a good sign when insiders hold a significant amount of stock in the company, and in that case, we’re happy to see a company insider act as a key stakeholder. With respectively 9.0% and 1.9% of the outstanding shares, Yixiao Cheng and Xin Yin are the second and third shareholders. Interestingly, the second largest shareholder, Yixiao Cheng, is also a managing director, again indicating strong insider ownership among the company’s major shareholders.
A closer look at our ownership data shows that the top 25 shareholders collectively own less than half of the ledger, suggesting a large group of small shareholders where no single shareholder has a majority.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. A number of analysts cover the stock, so you can look at growth forecasts quite easily.
Owned by Kuaishou Technology Insiders
The definition of an insider may differ slightly from country to country, but board members still matter. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own a reasonable proportion of Kuaishou Technology. Its market capitalization is only HK$256 billion and insiders hold HK$62 billion worth of shares in their own name. It is quite significant. Good to see this level of investment. You can check here if these insiders have bought recently.
General public property
With a 36% stake, the general public, consisting mainly of individual investors, has some influence over Kuaishou Technology. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.
Private equity ownership
With a 13% stake, private equity firms are able to play a role in shaping corporate strategy with a focus on value creation. This might appeal to some, because private equity is sometimes an activist who holds management accountable. But other times, the private equity sells off, after taking the company public.
Ownership of a public company
State-owned enterprises currently hold 17% of Kuaishou Technology’s shares. It may be a strategic interest and both companies may have related business interests. They may have separated. This exploitation probably deserves further investigation.
While it is worth considering the different groups that own a business, there are other, even more important factors. Take risks for example – Kuaishou Technology has 2 warning signs we think you should know.
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.