Individual investors account for 34% of Uchi Technologies Berhad's (KLSE:UCHITEC) ownership, while insiders account for 33%
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
The considerable ownership by individual investors in Uchi Technologies Berhad indicates that they collectively have a greater say in management and business strategy
A total of 8 investors have a majority stake in the company with 52% ownership
Insider ownership in Uchi Technologies Berhad is 33%
Every investor in Uchi Technologies Berhad (KLSE:UCHITEC) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 34% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, individual insiders make up 33% of the company’s shareholders. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.
Let's take a closer look to see what the different types of shareholders can tell us about Uchi Technologies Berhad.
See our latest analysis for Uchi Technologies Berhad
KLSE:UCHITEC Ownership Breakdown December 27th 2023
What Does The Institutional Ownership Tell Us About Uchi Technologies 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.
Uchi Technologies Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Uchi Technologies Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
KLSE:UCHITEC Earnings and Revenue Growth December 27th 2023
Hedge funds don't have many shares in Uchi Technologies Berhad. From our data, we infer that the largest shareholder is De-Tsan Kao (who also holds the title of Senior Key Executive) with 19% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. In comparison, the second and third largest shareholders hold about 7.7% and 6.8% of the stock.
We did some more digging and found that 8 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
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.
Insider Ownership Of Uchi Technologies Berhad
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.
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 Uchi Technologies Berhad. It has a market capitalization of just RM1.7b, and insiders have RM558m worth of shares in their own names. 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
The general public-- including retail investors -- own 34% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Uchi Technologies Berhad better, we need to consider many other factors. For example, we've discovered 3 warning signs for Uchi Technologies Berhad (2 make us uncomfortable!) that you should be aware of before investing here.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.
