While private companies own 40% of Supermax Corporation Berhad (KLSE:SUPERMX),

Key Insights

• The considerable ownership by retail investors in Supermax Corporation Berhad indicates that they collectively have a greater say in management and business strategy

• 50% of the business is held by the top 8 shareholders

• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

Every investor in Supermax Corporation Berhad (KLSE:SUPERMX) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 46% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And private companies on the other hand have a 40% ownership in the company.

Let’s take a closer look to see what the different types of shareholders can tell us about Supermax Corporation Berhad.

Check out our latest analysis for Supermax Corporation Berhad

What Does The Institutional Ownership Tell Us About Supermax Corporation Berhad?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Supermax Corporation Berhad does have institutional investors; and they hold a good portion of the company’s stock. 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 Supermax Corporation 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 Supermax Corporation Berhad. Supermax Holdings Sdn Bhd is currently the largest shareholder, with 40% of shares outstanding. For context, the second largest shareholder holds about 2.9% of the shares outstanding, followed by an ownership of 2.4% by the third-largest shareholder.

We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Story continues

Insider Ownership Of Supermax Corporation 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We can see that insiders own shares in Supermax Corporation Berhad. As individuals, the insiders collectively own RM88m worth of the RM2.1b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public– including retail investors — own 46% stake in the company, and hence can’t easily be ignored. 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

It seems that Private Companies own 40%, of the Supermax Corporation Berhad stock. It’s hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

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 always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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…