Retail investors invested in UP Fintech Holding Limited (NASDAQ:TIGR) weathered the brunt of last week’s $51 million decline in market capitalization

Key insight

• The significant ownership of private investors in UP Fintech Holding indicates that they collectively have greater influence on management and business strategy.
• 50% of the business is owned by the top 8 shareholders
• Insider ownership in UP Fintech Holding is 25%

If you want to know who really controls UP Fintech Holding Limited (NASDAQ:TIGR), you need to look at the composition of the share register. And the group that has the biggest piece of the pie is retail investors with 43% ownership. This means that the group will gain the most if the stock rises (or lose the most if there is a decline).

While insiders who own 25% came under pressure after their market capitalization fell to $533 million last week, retail investors took the biggest losses.

Let’s dive deeper into each type of owner of UP Fintech Holding, starting with the chart below.

See our latest analysis for UP Fintech Holding

What does the institutional ownership tell us about UP Fintech Holding?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock when it is included in a major index. We expect that most companies have some institutions in the register, especially if they are growing.

UP Fintech Holding already has institutions in the share register. They actually own a respectable stake in the company. This may indicate that the company has a certain degree of credibility in the investment environment. However, it is best to be cautious about relying on the supposed validation that comes with institutional investors. They are also wrong sometimes. If several institutions change their view on a stock at the same time, you can see the stock price drop quickly. It is therefore worth looking at UP Fintech Holding’s performance history below. Of course, the future is what really matters.

We note that hedge funds do not have a meaningful investment in UP Fintech Holding. With a 15% stake, CEO Tianhua Wu is the largest shareholder. With 11% and 9.5% of outstanding shares respectively, Xiaomi Corporation and Binsen Tang are the second and third largest shareholders.

We dug a little more and found that 8 of the top shareholders account for about 50% of the register, which suggests that along with larger shareholders there are a few smaller shareholders, thus balancing each other’s interests somewhat.

While studying institutional ownership of a company can add value to your research, it’s also good practice to examine analyst recommendations to gain a deeper understanding of a stock’s expected performance. Quite a few analysts cover the stock, so you can easily take a closer look at the forecast for growth.

Insider ownership of UP Fintech Holding

The definition of an insider may vary somewhat between different countries, but board members always count. The company’s management answers to the board and the latter must represent the shareholders’ interests. In particular, there are sometimes top-level managers who sit on the board themselves.

Most people consider insider ownership to be positive because it can indicate that the board is well aligned with other shareholders. But on some occasions too much power is concentrated in this group.

Insiders appear to own a significant stake in UP Fintech Holding Limited. It has a market capitalization of just $533 million, and insiders hold shares worth $134 million in their own names. It’s great to see insiders so invested in the business. It might be worth checking if these insiders have bought recently.

General public ownership

The general public – including retail investors – own 43% of the company, and therefore cannot be easily ignored. While this group may not necessarily strike out, it can certainly have a real influence on how the company is run.

Private company ownership

We can see that Private Companies own 8.7% of the shares that have been issued. It may be worth looking into this. If related parties, for example insiders, have an interest in one of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public ownership

We can see that public companies own 13% of the shares in UP Fintech Holding. It is difficult to say for sure, but this suggests that they have intertwined business interests. This could be a strategic effort, so it’s worth watching this space for changes in ownership.

Next step:

I think it’s very interesting to look at who actually owns a company. But to really gain insight, we also need to consider other information. Take risk for example – UP Fintech Holding has 1 warning sign we think you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article have been calculated using data from the last twelve months, which refers to the 12-month period ending on the last date of the month in which the accounts are dated. This may not be consistent with the annual report for the entire year.

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This article by Simply Wall St is general. We provide commentary based on historical data and analyst forecasts only using an objective methodology, and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. We aim to provide you with long-term focused analysis driven by fundamental data. Please 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 of the stocks mentioned.