Key Insights
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Insiders appear to have a vested interest in Padini Holdings Berhad's growth, as seen by their sizeable ownership
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A total of 2 investors have a majority stake in the company with 53% ownership
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37% of Padini Holdings Berhad is held by Institutions
To get a sense of who is truly in control of Padini Holdings Berhad (KLSE:PADINI), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 49% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).
With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.
In the chart below, we zoom in on the different ownership groups of Padini Holdings Berhad.
View our latest analysis for Padini Holdings Berhad
What Does The Institutional Ownership Tell Us About Padini 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.
Padini Holdings 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. 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 Padini Holdings Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Padini Holdings Berhad. Looking at our data, we can see that the largest shareholder is the CEO Pang Yong with 45% of shares outstanding. Kumpulan Wang Persaraan is the second largest shareholder owning 7.8% of common stock, and Employees Provident Fund of Malaysia holds about 6.6% of the company stock.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.