Key Insights

• Insiders appear to have a vested interest in LexinFintech Holdings' growth, as seen by their sizeable ownership

• 51% of the business is held by the top 5 shareholders

• Institutions own 23% of LexinFintech Holdings

To get a sense of who is truly in control of LexinFintech Holdings Ltd. (NASDAQ:LX), it is important to understand the ownership structure of the business. With 37% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 14% gain.

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

Check out our latest analysis for LexinFintech Holdings

What Does The Institutional Ownership Tell Us About LexinFintech 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.

LexinFintech Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 LexinFintech Holdings' earnings history below. Of course, the future is what really matters.

LexinFintech Holdings is not owned by hedge funds. With a 26% stake, CEO Wenjie Xiao is the largest shareholder. With 7.5% and 7.3% of the shares outstanding respectively, Fidelity International Ltd and Yi Wu are the second and third largest shareholders. Interestingly, the third-largest shareholder, Yi Wu is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 LexinFintech Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.