Supercomnet Technologies Berhad (KLSE:SCOMNET) insiders have significant skin in the game with 71% ownership
Key Insights
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Insiders appear to have a vested interest in Supercomnet Technologies Berhad's growth, as seen by their sizeable ownership
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52% of the business is held by the top 3 shareholders
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12% of Supercomnet Technologies Berhad is held by Institutions
Every investor in Supercomnet Technologies Berhad (KLSE:SCOMNET) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 71% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.
Let's take a closer look to see what the different types of shareholders can tell us about Supercomnet Technologies Berhad.
Check out our latest analysis for Supercomnet Technologies Berhad
What Does The Institutional Ownership Tell Us About Supercomnet Technologies 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.
Supercomnet Technologies 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Supercomnet Technologies Berhad's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Supercomnet Technologies Berhad. Looking at our data, we can see that the largest shareholder is the CEO Jong-Zone Shiue with 30% of shares outstanding. For context, the second largest shareholder holds about 14% of the shares outstanding, followed by an ownership of 8.0% by the third-largest shareholder. Interestingly, the second and third-largest shareholders also happen to be the Senior Key Executive and Member of the Board of Directors, respectively. This once again signifies considerable insider ownership amongst the company's top shareholders.
After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.