Yahoo Finance Individual investors account for 40% of Pantech Group Holdings Berhad's (KLSE:PANTECH) ownership, while insiders account for 25%
Key Insights
The considerable ownership by individual investors in Pantech Group Holdings Berhad indicates that they collectively have a greater say in management and business strategy
The top 12 shareholders own 51% of the company
A look at the shareholders of Pantech Group Holdings Berhad (KLSE:PANTECH) can tell us which group is most powerful. With 40% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, individual insiders make up 25% of the company’s shareholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
Let's delve deeper into each type of owner of Pantech Group Holdings Berhad, beginning with the chart below.
Check out our latest analysis for Pantech Group Holdings Berhad
What Does The Institutional Ownership Tell Us About Pantech Group Holdings Berhad?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in Pantech Group Holdings Berhad. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Pantech Group Holdings Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Pantech Group Holdings Berhad. CTL Capital Holding Sdn Bhd is currently the largest shareholder, with 17% of shares outstanding. For context, the second largest shareholder holds about 13% of the shares outstanding, followed by an ownership of 3.9% by the third-largest shareholder. Teoh Kean Goh, who is the second-largest shareholder, also happens to hold the title of Senior Key Executive. Additionally, the company's CEO Ting Leng Chew directly holds 1.5% of the total shares outstanding.
After doing some more digging, we found that the top 12 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Pantech Group 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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our information suggests that insiders maintain a significant holding in Pantech Group Holdings Berhad. It has a market capitalization of just RM924m, and insiders have RM229m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public-- including retail investors -- own 40% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Company Ownership
We can see that Private Companies own 18%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Pantech Group Holdings Berhad , and understanding them should be part of your investment process.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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.
