Yahoo Finance Lotte Chemical Titan Holding Berhad's (KLSE:LCTITAN) top owners are public companies with 76% stake, while 16% is held by individual investors
Key Insights
Lotte Chemical Titan Holding Berhad's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
76% of the company is held by a single shareholder (Lotte Chemical Corporation)
Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business
Every investor in Lotte Chemical Titan Holding Berhad (KLSE:LCTITAN) should be aware of the most powerful shareholder groups. 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.
Individual investors, on the other hand, account for 16% of the company's stockholders.
Let's delve deeper into each type of owner of Lotte Chemical Titan Holding Berhad, beginning with the chart below.
View our latest analysis for Lotte Chemical Titan Holding Berhad
What Does The Institutional Ownership Tell Us About Lotte Chemical Titan Holding Berhad?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Lotte Chemical Titan Holding Berhad does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Lotte Chemical Titan Holding Berhad's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Lotte Chemical Titan Holding Berhad. Lotte Chemical Corporation is currently the company's largest shareholder with 76% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 2.6% of the shares outstanding, followed by an ownership of 1.1% by the third-largest shareholder.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Lotte Chemical Titan Holding Berhad
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 most recent data indicates that insiders own less than 1% of Lotte Chemical Titan Holding Berhad. It appears that the board holds about RM27m worth of stock. This compares to a market capitalization of RM2.7b. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Lotte Chemical Titan Holding 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.
Public Company Ownership
We can see that public companies hold 76% of the Lotte Chemical Titan Holding Berhad shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
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.
I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.