Yahoo Finance With 37% stake, V.S. Industry Berhad (KLSE:VS) seems to have captured institutional investors' interest
Key Insights
Institutions' substantial holdings in V.S. Industry Berhad implies that they have significant influence over the company's share price
The top 8 shareholders own 51% of the company
Insider ownership in V.S. Industry Berhad is 27%
Every investor in V.S. Industry Berhad (KLSE:VS) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 37% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
Let's delve deeper into each type of owner of V.S. Industry Berhad, beginning with the chart below.
View our latest analysis for V.S. Industry Berhad
What Does The Institutional Ownership Tell Us About V.S. Industry 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.
V.S. Industry 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 V.S. Industry Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in V.S. Industry Berhad. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In V.S. Industry Berhad's case, its Top Key Executive, Kim Beh, is the largest shareholder, holding 15% of shares outstanding. With 9.1% and 7.0% of the shares outstanding respectively, Kumpulan Wang Persaraan and Employees Provident Fund of Malaysia are the second and third largest shareholders. In addition, we found that Sem Yam Gan, the CEO has 5.3% of the shares allocated to their name.
We did some more digging and found that 8 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of V.S. Industry 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 most recent data indicates that insiders own a reasonable proportion of V.S. Industry Berhad. Insiders own RM853m worth of shares in the RM3.1b company. 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
With a 35% ownership, the general public, mostly comprising of individual investors, have some degree of sway over V.S. Industry 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:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 1 warning sign we've spotted with V.S. Industry Berhad .
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.
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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.
