Adrian JohnsonTLDR:
- Qifu Technology, Inc. (NASDAQ:QFIN) saw a positive week for institutional investors after a year of losses.
- The majority stake in the company is held by institutional investors.
- Insiders own a significant portion of Qifu Technology.
Qifu Technology, Inc. (NASDAQ:QFIN) had a positive week for institutional investors who experienced losses of 32% over the past year. The majority stake in the company, around 48%, is owned by institutions, indicating that the stock price is highly sensitive to their trading actions. The recent market cap gain of US$74 million would likely be appreciated by institutional investors. There are a total of 9 investors who have a majority stake in the company with 50% ownership, while insiders own 14%. Qifu Technology’s credibility in the investment community can be seen through the fair amount of stake owned by institutional investors.
Institutional investors often become more enthusiastic about a stock once it’s included in a major index, which could explain their significant stake in Qifu Technology. However, it’s important to be cautious when relying on validation from institutional investors, as they can also get it wrong at times. Large institutional investors selling out of a stock simultaneously can result in a big share price drop. It’s worth checking the past earnings trajectory of Qifu Technology to gain a more comprehensive understanding of the stock.
Qifu Technology shares are also controlled by hedge funds, which can be quite active and activist, looking for medium-term catalysts to increase the share price. Hongyi Zhou is currently the largest shareholder with 14% of shares outstanding, followed by the second and third largest shareholders who hold about 8.0% and 6.2% of the stock respectively. The top 9 shareholders account for roughly 50% of the register, indicating a balance of interests among larger and smaller shareholders.
Insider ownership is considered positive as it indicates that the board is aligned with other shareholders. Insiders own US$325 million worth of shares in Qifu Technology, representing a good degree of alignment with shareholders. The general public holds an 18% stake in the company, which can collectively impact company policies. Private equity firms also hold a 6.2% stake and can influence key policy decisions.
While it is important to consider the different groups that own a company, other factors such as investment risk are more crucial. Qifu Technology’s historical data and analyst forecasts can provide valuable insights into the company’s future growth prospects. It is recommended to thoroughly analyze these factors before making any investment decisions in Qifu Technology.
