Private companies account for 44% of Binastra Corporation Berhad's (KLSE:BNASTRA) ownership, while insiders account for 36%
The considerable ownership by private companies in Binastra Corporation Berhad indicates that they collectively have a greater say in management and business strategy
A total of 2 investors have a majority stake in the company with 54% ownership
Insider ownership in Binastra Corporation Berhad is 36%
We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
A look at the shareholders of Binastra Corporation Berhad (KLSE:BNASTRA) can tell us which group is most powerful. With 44% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, individual insiders make up 36% of the company's shareholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.
Let's delve deeper into each type of owner of Binastra Corporation Berhad, beginning with the chart below.
Check out our latest analysis for Binastra Corporation 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.
Since institutions own only a small portion of Binastra Corporation Berhad, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
We note that hedge funds don't have a meaningful investment in Binastra Corporation Berhad. The company's largest shareholder is Jt Conglomerate Sdn Bhd, with ownership of 41%. Seng Lee is the second largest shareholder owning 13% of common stock, and Kak Tan holds about 11% of the company stock. Note that the second and third-largest shareholders are also Senior Key Executive and Member of the Board of Directors, respectively, meaning that the company's top shareholders are insiders.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 54% stake.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
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.
It seems insiders own a significant proportion of Binastra Corporation Berhad. Insiders own RM678m worth of shares in the RM1.9b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
With a 17% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Binastra Corporation 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.
We can see that Private Companies own 44%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
It's always worth thinking about the different groups who own shares in a company. But to understand Binastra Corporation Berhad better, we need to consider many other factors. For example, we've discovered 1 warning sign for Binastra Corporation Berhad that you should be aware of before investing here.
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 figures.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.
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