Key Insights

• The considerable ownership by retail investors in Xueda (Xiamen) Education Technology Group indicates that they collectively have a greater say in management and business strategy
• The top 18 shareholders own 50% of the company
• 32% of Xueda (Xiamen) Education Technology Group is held by Institutions

A look at the shareholders of Xueda (Xiamen) Education Technology Group Co., Ltd (SZSE:000526) can tell us which group is most powerful. With 43% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

While retail investors were the group that benefitted the most from last week's CN¥755m market cap gain, institutions too had a 32% share in those profits.

Let's take a closer look to see what the different types of shareholders can tell us about Xueda (Xiamen) Education Technology Group.

What Does The Institutional Ownership Tell Us About Xueda (Xiamen) Education Technology Group?

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.

As you can see, institutional investors have a fair amount of stake in Xueda (Xiamen) Education Technology Group. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Xueda (Xiamen) Education Technology Group, (below). Of course, keep in mind that there are other factors to consider, too.

Xueda (Xiamen) Education Technology Group is not owned by hedge funds. Our data shows that Yinrun Holding Group Co., Ltd. is the largest shareholder with 10% of shares outstanding. Tianjin Ante Culture Communication Co., Ltd. is the second largest shareholder owning 8.6% of common stock, and Tianjin Jinfeng Culture Communication Co., Ltd. holds about 4.9% of the company stock.

A closer look at our ownership figures suggests that the top 18 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Xueda (Xiamen) Education Technology Group

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. 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.

Our data suggests that insiders own under 1% of Xueda (Xiamen) Education Technology Group Co., Ltd in their own names. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It has a market capitalization of just CN¥6.8b, and the board has only CN¥17m worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 43% stake in Xueda (Xiamen) Education Technology Group. 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 Company Ownership

It seems that Private Companies own 25%, of the Xueda (Xiamen) Education Technology Group stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Xueda (Xiamen) Education Technology Group is showing 1 warning sign in our investment analysis , you should know about...

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.