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
The largest shareholder of the company is Lotte Chemical Corporation with a 76% stake
Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
To get a sense of who is truly in control of Lotte Chemical Titan Holding Berhad (KLSE:LCTITAN), it is important to understand the ownership structure of the business. With 76% stake, public companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, individual investors make up 16% of the company’s shareholders.
Let's delve deeper into each type of owner of Lotte Chemical Titan Holding Berhad, beginning with the chart below.
See 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.
As you can see, institutional investors have a fair amount of stake in Lotte Chemical Titan Holding Berhad. 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 Lotte Chemical Titan Holding 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 Lotte Chemical Titan Holding Berhad. Looking at our data, we can see that the largest shareholder is Lotte Chemical Corporation 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 0.8% by the third-largest shareholder.
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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
We can see that insiders own shares in Lotte Chemical Titan Holding Berhad. In their own names, insiders own RM40m worth of stock in the RM2.4b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.
General Public Ownership
The general public-- including retail investors -- own 16% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Public Company Ownership
We can see that public companies hold 76% of the Lotte Chemical Titan Holding 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:
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. For example, we've discovered 1 warning sign for Lotte Chemical Titan Holding Berhad that you should be aware of before investing here.
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.