Here’s What Xinyuan Real Estate Co., Ltd.’s (NYSE:XIN) Shareholder Ownership Structure Looks Like
If you want to know who Xinyuan Real Estate Co., Ltd. (NYSE: XIN), you need to look at the composition of the share register. Institutions often own stocks in larger companies, and we expect insiders to own a significant percentage of the smaller companies. I like to see at least a little bit of inside ownership. As Charlie Munger said, “Show me the incentive and I’ll show you the result.
Xinyuan Real Estate is a smaller company with a market cap of $ 146 million that may still be under the radar of many institutional investors. Our analysis of ownership of the company below shows that institutions aren’t really that widespread in the share register. Let’s dig deeper into each type of owner to learn more about Xinyuan Real Estate.
Check out our latest analysis for Xinyuan Real Estate
NYSE: Breakdown of XIN Ownership on December 29, 2020
What does institutional ownership tell us about Xinyuan Real Estate?
Institutions usually measure themselves against a benchmark when reporting to their own investors. As a result, they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutes on their register, especially as they grow.
With institutions owning only a small portion of Xinyuan Real Estate, many may not have spent much time thinking about the stock. But it is clear that some have; and they liked it enough to shop. If the company increases its profits, it could indicate that it is just beginning to grab the attention of these deep-pocket investors. It’s not uncommon for the stock price to go up sharply when multiple institutional investors are trying to buy into a stock at the same time. So take a look at the historical earnings history below, but remember that the future is most important.
NYSE: XIN Earnings and Revenue Growth December 29, 2020
We find that hedge funds do not have a meaningful investment in Xinyuan Real Estate. CEO Yong Zhang is the largest shareholder with 22%. In context, the second largest shareholder holds around 22% of the shares issued, followed by the third largest shareholder of 1.4%. Interestingly, Yuyan Yang, the second largest shareholder, is also a top key executive, which in turn indicates a strong inside stake among the company’s top shareholders.
When examining our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, meaning that no single person has a controlling stake.
While it makes sense to examine institutional ownership data for a company, it is also useful to examine analysts’ views to determine which direction the wind is blowing. While there is some analyst coverage, the company is likely not widespread. That way it could get more attention later.
Inside ownership of Xinyuan real estate
The definition of an insider can vary slightly between countries, but the board members always count. Management ultimately replies to the board. However, it’s not uncommon for managers to be board members, especially if they’re founders or CEOs.
I generally think that inside ownership is a good thing. In some cases, however, it is more difficult for other shareholders to hold the board of directors accountable for decisions.
Our latest data shows that insiders have a fair stake in Xinyuan Real Estate Co., Ltd. have. Market capitalization is only $ 146 million, and insiders have $ 65 million worth of shares in their own name. I would say this shows the focus on shareholders, but it’s worth noting that the company is still quite small. Some insiders may have started the company. You can click here to see if these Insiders bought or sold.
General public property
The general public, who are mostly retail investors, collectively owns 52% of Xinyuan Real Estate shares. These ownership structures give private investors the opportunity to influence important political decisions such as the composition of the board of directors, executive compensation and the payout ratio.
While it is worth looking at the different groups that own a business, there are other factors that are even more important. For example, we identified 4 warning signs for Xinyuan Real Estate (2 make us uncomfortable) that you should be aware of.
But in the end It is the future, not the past that will determine how well the owners of this business will perform. As such, we think it wise to take a look at this free report, which shows whether analysts are predicting a brighter future.
NB: The figures in this article are calculated using data from the last twelve months, which refers to the twelve month period ending on the last date of the month in which the financial statements are dated. This may not match the figures in the annual report for the full year.
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