Retail investors account for 43% of Ancom Nylex Berhad's (KLSE:ANCOMNY) ownership, while insiders account for 29%
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
The considerable ownership by retail investors in Ancom Nylex Berhad indicates that they collectively have a greater say in management and business strategy
A total of 18 investors have a majority stake in the company with 50% ownership
A look at the shareholders of Ancom Nylex Berhad (KLSE:ANCOMNY) can tell us which group is most powerful. With 43% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
And individual insiders on the other hand have a 29% ownership in the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.
Let's take a closer look to see what the different types of shareholders can tell us about Ancom Nylex Berhad.
KLSE:ANCOMNY Ownership Breakdown November 19th 2023
What Does The Institutional Ownership Tell Us About Ancom Nylex 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.
We can see that Ancom Nylex Berhad does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Ancom Nylex Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
KLSE:ANCOMNY Earnings and Revenue Growth November 19th 2023
Hedge funds don't have many shares in Ancom Nylex Berhad. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Ancom Nylex Berhad's case, its Top Key Executive, Ka Wei Siew, is the largest shareholder, holding 13% of shares outstanding. With 8.1% and 4.7% of the shares outstanding respectively, Cheun Wei Lee and Siew Nim Chee & Sons Sendirian Berhad are the second and third largest shareholders. Interestingly, the second-largest shareholder, Cheun Wei Lee is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.
A closer look at our ownership figures suggests that the top 18 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.
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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Ancom Nylex 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.
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.
Our information suggests that insiders maintain a significant holding in Ancom Nylex Berhad. It has a market capitalization of just RM1.1b, and insiders have RM325m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 43% stake in Ancom Nylex 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.
Private Company Ownership
We can see that Private Companies own 7.0%, of the shares on issue. 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:
It's always worth thinking about the different groups who own shares in a company. But to understand Ancom Nylex Berhad better, we need to consider many other factors. For example, we've discovered 1 warning sign for Ancom Nylex Berhad that you should be aware of before investing here.
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.
