Yahoo Finance PBA Holdings Bhd's (KLSE:PBA) top owners are state or government with 55% stake, while 17% is held by individual investors
Key Insights
Significant control over PBA Holdings Bhd by state or government implies that the general public has more power to influence management and governance-related decisions
55% of the company is held by a single shareholder (Penang State Government)
Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
A look at the shareholders of PBA Holdings Bhd (KLSE:PBA) can tell us which group is most powerful. We can see that state or government own the lion's share in the company with 55% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Individual investors, on the other hand, account for 17% of the company's stockholders.
Let's take a closer look to see what the different types of shareholders can tell us about PBA Holdings Bhd.
Check out our latest analysis for PBA Holdings Bhd
What Does The Institutional Ownership Tell Us About PBA Holdings Bhd?
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 PBA Holdings Bhd does have institutional investors; and they hold a good portion of the company's stock. 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 PBA Holdings Bhd, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in PBA Holdings Bhd. The company's largest shareholder is Penang State Government, with ownership of 55%. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 10% of the shares outstanding, followed by an ownership of 4.1% by the third-largest shareholder.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of PBA Holdings Bhd
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
We can see that insiders own shares in PBA Holdings Bhd. It has a market capitalization of just RM609m, and insiders have RM41m worth of shares, in their own names. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.
General Public Ownership
With a 17% ownership, the general public, mostly comprising of individual investors, have some degree of sway over PBA Holdings Bhd. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Company Ownership
Our data indicates that Private Companies hold 15%, of the company's shares. 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:
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. Take risks for example - PBA Holdings Bhd has 2 warning signs we think you should be aware of.
Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.
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.
