Shares of Hitek Global (NASDAQ:HKIT) are surging higher today by nearly 300%, although the reasons behind the jump aren’t exactly clear. The company operates as a holding company of several Chinese subsidiaries with a focus on information technology and technical consulting. A short squeeze doesn’t appear to be the culprit here, as short interest as a percentage of float was just 0.21% based on the latest update as of Jan. 12.
It’s worth pointing out that Hitek has a float of just 5.76 million shares. Meanwhile, the volume in HKIT stock today has exceeded 60 million shares, meaning that the float has traded hands more than 10x in just a single day. Total shares and implied shares outstanding both tally in at 14.39 million.
The company’s last Securities and Exchange Commission (SEC) filing detailed the proposals to be voted on at its 2024 general annual meeting held on Feb. 5. Hitek has not yet disclosed the results.
The most material proposal sought to re-designate and re-classify its 14.39 million currently issued shares into 6.2 million Class A ordinary shares. Other proposals included the reappointment of three directors, the appointment of two directors, and the appointment of Wei, Wei & Co. as Hitek’s independent registered public accounting firm.
5 Investors Betting Big on HKIT Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. However, HKIT stock doesn’t exactly have the strongest institutional support. During Q3, only 11 13F filers disclosed a stake in the company, an increase of seven filers from the prior quarter, according to Whale Wisdom. The largest filers are Citadel, HRT Financial and Geode Capital Management, although each of these filers own a minuscule stake in Hitek.
In total, institutions own just 1.09% of HKIT shares and 2.73% of the float, while insiders own 59.91% of all shares.
With its 2024 annual meeting proxy filing, Hitek also disclosed its largest shareholders. Let’s take a look:
- Fortune Enterprise Holdings: 8.19 million shares.
- Cede & Co.: 3.4 million shares.
- Luotec Information: 548,237 shares.
- Star Discover Global: 431,000 shares.
- Centurion Tech Holdings: 414,000 shares.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
