key insights
Every investor in SAM Engineering & Equipment (M) Berhad (KLSE:SAM) should be aware of the most powerful shareholder groups. And the group with the biggest pie is private companies with 55% ownership. That is, if the stock price rises, the group will gain the most (or if the stock price falls, it will suffer the maximum loss).
While private companies benefited the most from last week's 11% rise in share prices, institutional investors, who own 26% of the stock, also stood to benefit from the rise.
The chart below zooms in on the different ownership groups for SAM Engineering & Equipment (M) Berhad.
Check out our latest analysis for SAM Engineering & Equipment (M) Berhad.
What does institutional ownership tell us about SAM Engineering & Equipment (M) Berhad?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they usually consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors own a fair amount of shares in SAM Engineering & Equipment (M) Berhad. This suggests some credibility among professional investors. But we can't rely on that fact alone because institutions make bad investments sometimes, just like everyone does. If multiple financial institutions change their view on a stock at the same time, you could see the stock price drop fast. It is therefore worth checking SAM Engineering & Equipment (M) Berhad's earnings history, below. Of course, what really matters is the future.
Hedge funds don't have many shares in SAM Engineering & Equipment (M) Berhad. Accuron Technologies Limited is currently his largest shareholder with 55% of the outstanding shares. This essentially means that they have extensive influence, if not complete control, over the future of the company. For context, the second largest shareholder holds about 6.7% of the shares outstanding, followed by an ownership of 4.6% by the third largest shareholder.
Researching institutional ownership is a good way to assess and filter a stock's expected performance. The same can be done by studying analyst sentiment. Quite a few analysts cover this stock, so you can find out its expected growth quite easily.
Insider ownership in SAM Engineering & Equipment (M) Berhad
The definition of a company insider can be subjective and varies by jurisdiction. Our data reflects individual insiders, and at least captures board members. The answers of company management to the board of directors and the latter must represent the interests of shareholders. In particular, top-level managers themselves may sit on the board.
Insider ownership is positive when it signals leaders 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 depending on the situation.
Our data suggests that insiders own less than 1% of SAM Engineering & Equipment (M) Berhad in their own names. However, we note that insiders may have an interest indirectly through private companies or other corporate structures. It appears that board members only own RM5.1 million worth of shares in the RM3.6 billion company. Many people tend to prefer boards with larger stakes. As a next step, we recommend checking out this free overview of insider buying and selling.
Open to the public
The general public, usually retail investors, owns 19% of SAM Engineering & Equipment (M) Berhad's shares. Although this size of ownership is significant, it may not be enough to change company policy if the decision is not aligned with other large shareholders.
Private company ownership
Our data shows that Private companies own 55% of the company's shares. Private companies may qualify as related parties. Insiders may have an interest in a public company through ownership in a private company rather than in their individual capacity. Although it is difficult to draw broad conclusions, it is worth noting as an area with room for further research.
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, consider risk.Every company has them and we discovered that 2 warning signs for SAM Engineering & Equipment (M) Berhad you should know about.
But in the end it's the futureIt, not the past, determines how well the owner of this business will do. So we might consider this free report showing whether analysts are predicting a bright future.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
