Malaysia Airports Holdings Berhad (KLSE:AIRPORT) most popular amongst sovereign wealth funds who own 39% of the shares, institutions hold 35%
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
Malaysia Airports Holdings Berhad's significant sovereign wealth funds ownership suggests that the key decisions are influenced by shareholders from the larger public
55% of the business is held by the top 4 shareholders
A look at the shareholders of Malaysia Airports Holdings Berhad (KLSE:AIRPORT) can tell us which group is most powerful. With 39% stake, sovereign wealth funds possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Institutions, on the other hand, account for 35% of the company's stockholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
Let's delve deeper into each type of owner of Malaysia Airports Holdings Berhad, beginning with the chart below.
KLSE:AIRPORT Ownership Breakdown November 19th 2023
What Does The Institutional Ownership Tell Us About Malaysia Airports Holdings 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.
As you can see, institutional investors have a fair amount of stake in Malaysia Airports Holdings Berhad. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Malaysia Airports Holdings Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.
KLSE:AIRPORT Earnings and Revenue Growth November 19th 2023
Hedge funds don't have many shares in Malaysia Airports Holdings Berhad. The company's largest shareholder is Khazanah Nasional Berhad, with ownership of 33%. Meanwhile, the second and third largest shareholders, hold 8.6% and 6.8%, of the shares outstanding, respectively.
On looking further, we found that 55% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Malaysia Airports 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.
We note our data does not show any board members holding shares, personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.
General Public Ownership
The general public, who are usually individual investors, hold a 23% stake in Malaysia Airports Holdings Berhad. 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:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Malaysia Airports Holdings Berhad you should know about.
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.
