Key Insights

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

• A total of 4 investors have a majority stake in the company with 55% ownership

• Institutions own 23% of LexinFintech Holdings

If you want to know who really controls LexinFintech Holdings Ltd. (NASDAQ:LX), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 48% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

So, insiders of LexinFintech Holdings have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.

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

View our latest analysis for LexinFintech Holdings

What Does The Institutional Ownership Tell Us About LexinFintech Holdings?

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

As you can see, institutional investors have a fair amount of stake in LexinFintech Holdings. 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 LexinFintech Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.

LexinFintech Holdings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Wenjie Xiao with 24% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 16% and 7.5%, of the shares outstanding, respectively.

Our research also brought to light the fact that roughly 55% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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 useful to find out their aggregate view on the future.