Yahoo Finance With 79% ownership, SFP Tech Holdings Berhad (KLSE:SFPTECH) insiders have a lot riding on the company's future
Key Insights
Significant insider control over SFP Tech Holdings Berhad implies vested interests in company growth
The largest shareholder of the company is Beng Huat Keoh with a 69% stake
Using data from company's past performance alongside ownership research, one can better assess the future performance of a company
Every investor in SFP Tech Holdings Berhad (KLSE:SFPTECH) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 79% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
So it follows, every decision made by insiders of SFP Tech Holdings Berhad regarding the company's future would be crucial to them.
In the chart below, we zoom in on the different ownership groups of SFP Tech Holdings Berhad.
See our latest analysis for SFP Tech Holdings Berhad
What Does The Institutional Ownership Tell Us About SFP Tech Holdings Berhad?
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.
We can see that SFP Tech Holdings Berhad does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of SFP Tech Holdings Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
SFP Tech Holdings Berhad is not owned by hedge funds. From our data, we infer that the largest shareholder is Beng Huat Keoh (who also holds the title of Senior Key Executive) with 69% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. With 3.8% and 1.8% of the shares outstanding respectively, Great Eastern Life Assurance (Malaysia) Berhad, Insurance Investments and Lai Guan Hong are the second and third largest shareholders.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of SFP Tech Holdings Berhad
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders own more than half of SFP Tech Holdings Berhad. This gives them effective control of the company. Given it has a market cap of RM2.0b, that means they have RM1.6b worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.
General Public Ownership
With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over SFP Tech Holdings Berhad. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand SFP Tech Holdings Berhad better, we need to consider many other factors.
I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
