key insights
Ekovest Berhad’s significant retail investor ownership suggests that key decisions are influenced by larger public shareholders
50% of the business is owned by the top 18 shareholders
Insider ownership in Ekovest Berhad is 23%
Every investor in Ekovest Berhad (KLSE:EKOVEST) should be aware of the most powerful shareholder groups. The group that owns the most shares in the company (about 50% to be exact) is individual investors. In other words, this group faces the greatest upside potential (or downside risk).
Meanwhile, individual insiders make up 23% of the company’s shareholders. Large companies usually have institutions as shareholders, and we often see insiders owning shares in smaller companies.
Let’s delve deeper into each type of owner of Ekovest Berhad, starting from the table below.
Check out our latest analysis for Ekovest Berhad.
Ownership breakdown
What does property ownership tell us about Ekovest Berhad?
Many institutions measure performance based on indicators that approximate local markets. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stock in Ekovest Berhad. This implies the analysts working for these institutions have considered the stock and they like it. But just like anyone else, they can 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 Ekovest Berhad, (below). Of course, keep in mind that there are other factors to consider as well.
Profit and revenue growth
Note that hedge funds don’t have a meaningful investment in Ecovest Berhad. From our data, we estimate that the largest shareholder is Kang Lim (also holds the title Top Key Executive) with 18% of shares outstanding. It’s usually considered a good sign when insiders own a significant number of shares in a company, but in this case we see company insiders playing the role of key stakeholders. It’s a pleasure. With 10% and 4.6% of the shares outstanding, respectively, Ekovest Holdings Sdn Bhd and Norges Bank Investment Management are the second and third largest shareholders.
If we take a closer look at our ownership figures, we can see that the top 18 shareholders have a combined ownership of 50%, meaning that no single shareholder has a majority.
While researching 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 is some analyst coverage of this stock, but it could become better known over time.
the story continues
Insider ownership in Ekovest Berhad
The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be members of the board of directors. This is especially true if the manager is the founder or CEO.
Insider ownership is positive when it signals leaders 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 depending on the situation.
It appears that insiders own a significant portion of Ecovest Berhad. Insiders have a RM245m stake in the RM1.1b business. It’s great to see insiders are so invested in this business. It might be worth checking if those insiders have been buying recently.
Open to the public
The general public, usually individual investors, owns 50% of Ecovest Berhad’s shares. Although this size of ownership is significant, it may not be enough to change company policy if the decision is not aligned with other large shareholders.
Private company ownership
Our data shows that Private companies own 13%, of the company’s shares. It’s hard to draw any conclusions from this fact alone, so it’s worth finding out who owns these private companies. Insiders and other parties may have an interest in the stock of a public company through another private company.
Next steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Let’s take risk as an example. Ekovest Berhad has 2 warning signs (and 1 which is a bit concerning) you should be aware of.
If you’re like me, you might want to consider whether this company will grow or shrink. Luckily you can check this free report showing analyst forecasts for its future.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the 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 using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
