While private equity firms own 39% of Xunlei Limited (NASDAQ:XNET), individual investors are its largest shareholders with 45% ownership
Key Insights
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Significant control over Xunlei by individual investors implies that the general public has more power to influence management and governance-related decisions
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The top 5 shareholders own 51% of the company
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Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
To get a sense of who is truly in control of Xunlei Limited (NASDAQ:XNET), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 45% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And private equity firms on the other hand have a 39% ownership in the company.
Let's take a closer look to see what the different types of shareholders can tell us about Xunlei.
View our latest analysis for Xunlei
What Does The Institutional Ownership Tell Us About Xunlei?
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.
Xunlei already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Xunlei's historic earnings and revenue below, but keep in mind there's always more to the story.
Xunlei is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Xiaomi Ventures Limited with 39% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.0% and 2.7%, of the shares outstanding, respectively. Sean Zou, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Furthermore, CEO Jinbo Li is the owner of 1.0% of the company's shares.
On looking further, we found that 51% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.