Kuala Lumpur Kepong Berhad (KLSE:KLK) most popular amongst public companies who own 48% of the shares, institutions hold 23%
Key Insights
Kuala Lumpur Kepong Berhad's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
The top 2 shareholders own 58% of the company
Institutions own 23% of Kuala Lumpur Kepong Berhad
If you want to know who really controls Kuala Lumpur Kepong Berhad (KLSE:KLK), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are public companies 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).
And institutions on the other hand have a 23% ownership in the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
Let's delve deeper into each type of owner of Kuala Lumpur Kepong Berhad, beginning with the chart below.
Check out our latest analysis for Kuala Lumpur Kepong Berhad
What Does The Institutional Ownership Tell Us About Kuala Lumpur Kepong 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 Kuala Lumpur Kepong 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Kuala Lumpur Kepong Berhad's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Kuala Lumpur Kepong Berhad. Looking at our data, we can see that the largest shareholder is Batu Kawan Berhad with 48% of shares outstanding. In comparison, the second and third largest shareholders hold about 11% and 6.9% of the stock.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 58% stake.
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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Kuala Lumpur Kepong Berhad
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
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.
Our data suggests that insiders own under 1% of Kuala Lumpur Kepong Berhad in their own names. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around RM128m worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public-- including retail investors -- own 18% stake in the company, and hence can't easily be ignored. 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.
Public Company Ownership
We can see that public companies hold 48% of the Kuala Lumpur Kepong Berhad shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 3 warning signs for Kuala Lumpur Kepong Berhad you should be aware of, and 2 of them are potentially serious.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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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