Key Insights

• Institutions' substantial holdings in Xinyi Solar Holdings implies that they have significant influence over the company's share price
• The top 7 shareholders own 52% of the company
• Insiders own 26% of Xinyi Solar Holdings

A look at the shareholders of Xinyi Solar Holdings Limited (HKG:968) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 28% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And so it follows that institutional investors was the group most impacted after the company's market cap fell to HK$81b last week after a 3.7% drop in the share price. The recent loss, which adds to a one-year loss of 27% for stockholders, may not sit well with this group of investors. Institutions or "liquidity providers" control large sums of money and therefore, these types of investors usually have a lot of influence over stock price movements. As a result, if the downtrend continues, institutions may face pressures to sell Xinyi Solar Holdings, which might have negative implications on individual investors.

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

Check out 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.

As you can see, institutional investors have a fair amount of stake in Xinyi Solar Holdings. 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 Xinyi Solar Holdings' earnings history below. Of course, the future is what really matters.

Xinyi Solar Holdings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Xinyi Glass Holdings Limited with 23% of shares outstanding. In comparison, the second and third largest shareholders hold about 13% and 5.0% of the stock. Yin Yee Lee, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Furthermore, CEO Yau Ching Lee is the owner of 3.6% of the company's shares.

On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 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 Xinyi Solar Holdings

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in Xinyi Solar Holdings Limited. It is very interesting to see that insiders have a meaningful HK$21b stake in this HK$81b 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

With a 23% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Xinyi Solar Holdings. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

We can see that public companies hold 23% of the Xinyi Solar Holdings shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for Xinyi Solar Holdings that you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.