Key Insights

• Insiders appear to have a vested interest in Xinyi Solar Holdings' growth, as seen by their sizeable ownership
• A total of 7 investors have a majority stake in the company with 50% ownership
• 26% of Xinyi Solar Holdings is held by Institutions

Every investor in Xinyi Solar Holdings Limited (HKG:968) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 26% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit HK$79b market cap following a 9.0% gain in the stock.

Let's delve deeper into each type of owner of Xinyi Solar Holdings, beginning with the chart below.

See our latest analysis for Xinyi Solar Holdings

What Does The Institutional Ownership Tell Us About Xinyi Solar Holdings?

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.

Xinyi Solar Holdings already has institutions on the share registry. Indeed, they own a respectable stake in 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Xinyi Solar Holdings, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Xinyi Solar Holdings. Looking at our data, we can see that the largest shareholder is Xinyi Glass Holdings Limited with 23% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 13% and 3.7%, of the shares outstanding, respectively. Yin Yee Lee, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Additionally, the company's CEO Yau Ching Lee directly holds 3.6% of the total shares outstanding.

We did some more digging and found that 7 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Xinyi Solar Holdings

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 Xinyi Solar Holdings Limited. It is very interesting to see that insiders have a meaningful HK$20b stake in this HK$79b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 25% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 23% of Xinyi Solar Holdings stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Xinyi Solar Holdings better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Xinyi Solar Holdings .

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.