Public companies invested in M & A Equity Holdings Berhad (KLSE:M&A) up 10% last week, insiders too were rewarded
Key Insights
- The considerable ownership by public companies in M & A Equity Holdings Berhad indicates that they collectively have a greater say in management and business strategy
- 59% of the company is held by a single shareholder (Insas Berhad)
- Insiders own 24% of M & A Equity Holdings Berhad
If you want to know who really controls M & A Equity Holdings Berhad (KLSE:M&A), then you'll have to look at the makeup of its share registry. With 59% stake, public companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Following a 10% increase in the stock price last week, public companies profited the most, but insiders who own 24% stock also stood to gain from the increase.
Let's take a closer look to see what the different types of shareholders can tell us about M & A Equity Holdings Berhad.
See our latest analysis for M & A Equity Holdings Berhad
What Does The Lack Of Institutional Ownership Tell Us About M & A Equity Holdings Berhad?
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
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. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of M & A Equity Holdings Berhad, for yourself, below.
Hedge funds don't have many shares in M & A Equity Holdings Berhad. Insas Berhad is currently the company's largest shareholder with 59% of shares outstanding. This implies that they have majority interest control of the future of the company. Nur Binti Ishak is the second largest shareholder owning 7.2% of common stock, and Upayapadu (M) Sdn. Bhd. holds about 5.0% of the company stock. Additionally, the company's CEO Choon Tan directly holds 1.5% of the total shares outstanding.
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
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. 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.
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 information suggests that insiders maintain a significant holding in M & A Equity Holdings Berhad. Insiders have a RM129m stake in this RM540m business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over 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.
Private Company Ownership
We can see that Private Companies own 6.2%, 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 59% of the M & A Equity Holdings 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:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 1 warning sign for M & A Equity Holdings Berhad that you should be aware of before investing here.
Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.
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.