Yahoo Finance While individual investors own 26% of M & A Equity Holdings Berhad (KLSE:M&A), public companies are its largest shareholders with 56% ownership
Key Insights
M & A Equity Holdings Berhad's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
56% of the company is held by a single shareholder (Insas Berhad)
Every investor in M & A Equity Holdings Berhad (KLSE:M&A) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 56% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And individual investors on the other hand have a 26% ownership in the company.
Let's delve deeper into each type of owner of M & A Equity Holdings Berhad, beginning with the chart below.
Check out our latest analysis for M & A Equity Holdings Berhad
What Does The Institutional Ownership Tell Us About M & A Equity 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.
We can see that M & A Equity Holdings 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. 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 M & A Equity Holdings Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.
M & A Equity Holdings Berhad is not owned by hedge funds. Our data shows that Insas Berhad is the largest shareholder with 56% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. For context, the second largest shareholder holds about 4.3% of the shares outstanding, followed by an ownership of 3.1% by the third-largest shareholder. Hong Leong Chee, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. Furthermore, CEO Choon Tan is the owner of 1.5% of the company's shares.
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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of M & A Equity Holdings Berhad
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.
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 a reasonable proportion of M & A Equity Holdings Berhad. Insiders have a RM97m stake in this RM770m business. 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, who are usually individual investors, hold a 26% stake in M & A Equity Holdings Berhad. 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.
Public Company Ownership
We can see that public companies hold 56% of the M & A Equity Holdings Berhad 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 M & A Equity Holdings Berhad better, we need to consider many other factors. For example, we've discovered 3 warning signs for M & A Equity Holdings Berhad (1 is concerning!) that you should be aware of before investing here.
Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.
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.
