The considerable participation of retail investors in UP Fintech Holding indicates that they collectively have a greater say in management and business strategy.
51% of the company is owned by the 8 main shareholders
Each investor in UP Fintech Holding Limited (NASDAQ:TIGR) must know the most powerful groups of shareholders. And the group that holds the biggest share of the pie is retail investors with a 41% stake. In other words, the group faces maximum upside potential (or downside risk).
Meanwhile, individual insiders make up 23% of the company’s shareholders. Institutions often own shares in larger companies, and we’d expect to see insiders owning a notable percentage of the smaller ones.
Let’s take a closer look at each UP Fintech Holding owner type, starting with the table below.
Institutions typically measure themselves against a benchmark when reporting to their own investors. So they often become more enthusiastic about a stock once it is included in a major index. We expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a significant stake in UP Fintech Holding. This may indicate that the company has a certain degree of credibility with the investment community. However, it is best to be wary of the supposed validation provided by institutional investors. They, too, are sometimes wrong. When multiple institutions own a stock, there is always a risk that they will end up in a ‘crowded trade’. When such a trade goes bad, multiple parties may compete to sell their shares quickly. This risk is higher in a company without a history of growth. You can see UP Fintech Holding’s historic earnings and revenue below, but keep in mind there’s always more to the story.
NasdaqGS: TIGR Earnings and Revenue Growth July 17, 2024
UP Fintech Holding is not owned by hedge funds. The company’s CEO, Tianhua Wu, is the largest shareholder with 14% of the shares outstanding. Xiaomi Corporation is the second largest shareholder with 11% of the common shares and Binsen Tang holds approximately 7.7% of the company’s shares.
Upon closer inspection, we found that more than half of the company’s shares are owned by the top eight shareholders, suggesting that the interests of the largest shareholders are to some extent balanced by those of the smallest.
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 helpful to know their overall view of the future.
The definition of corporate insiders can be subjective and varies by jurisdiction. Our data reflects individual insiders, capturing board members at a minimum. Management ultimately answers to the board of directors. However, it is not uncommon for managers to be board members, especially if they are a founder or CEO.
Most view insider ownership as positive because it can indicate that the board is well aligned with other shareholders. However, sometimes too much power is concentrated within this group.
Our most recent data indicates that insiders own a reasonable proportion of UP Fintech Holding Limited. It has a market cap of just US$729m, and insiders own US$168m worth of shares in their own names. We’d say this shows alignment with shareholders, but it’s worth noting that the company is still quite small; some insiders may have founded the company. You can click here to see if these insiders have been buying or selling.
The general public, including retail investors, owns 41% of the company’s shares and therefore cannot be easily ignored. This size of ownership, although considerable, may not be enough to change company policy if the decision is not in line with that of other large shareholders.
Our data indicates that private companies own 8.9% of the company’s shares. It is difficult to draw conclusions from this fact alone, so it is worth asking who owns these private companies. Sometimes insiders or other related parties own an interest in shares of a public company through a separate private company.
It appears to us that public companies own 11% of UP Fintech Holding. We cannot be sure, but it is quite possible that this is a strategic issue. Businesses may be similar or work together.
It’s always helpful to think about the different groups that own shares in a company. But to understand UP Fintech Holding better, we need to consider many other factors.
NB: The figures in this article are calculated using data for the last twelve months, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the entire year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to constitute financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Any feedback on this article? Worried about the content? Get in touch with us directly. You can also send an email editorial-team@simplywallst.com
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