JEP Holdings Ltd.'s (Catalist:1J4) top owners are public companies with 76% stake, while 13% is held by individual investors
Key Insights
The considerable ownership by public companies in JEP Holdings indicates that they collectively have a greater say in management and business strategy
The largest shareholder of the company is UMS Holdings Limited with a 76% stake
Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
If you want to know who really controls JEP Holdings Ltd. (Catalist:1J4), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 76% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, individual investors make up 13% of the company’s shareholders.
In the chart below, we zoom in on the different ownership groups of JEP Holdings.
See our latest analysis for JEP Holdings
What Does The Lack Of Institutional Ownership Tell Us About JEP Holdings?
We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. JEP Holdings might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
Hedge funds don't have many shares in JEP Holdings. UMS Holdings Limited is currently the company's largest shareholder with 76% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 3.6% and 1.8% of the shares outstanding respectively, Seven Creek Pte Ltd and Andy Luong are the second and third largest shareholders. Andy Luong, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of JEP Holdings
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Shareholders would probably be interested to learn that insiders own shares in JEP Holdings Ltd.. In their own names, insiders own S$10m worth of stock in the S$134m company. This shows at least some alignment, but we usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 13% 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 3.6%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Public Company Ownership
We can see that public companies hold 76% of the JEP Holdings shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand JEP Holdings better, we need to consider many other factors. Be aware that JEP Holdings is showing 2 warning signs in our investment analysis , and 1 of those is concerning...
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.
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.