Key Insights
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Nextgreen Global Berhad's significant insider ownership suggests inherent interests in company's expansion
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53% of the business is held by the top 7 shareholders
To get a sense of who is truly in control of Nextgreen Global Berhad (KLSE:NGGB), it is important to understand the ownership structure of the business. With 44% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
So, insiders of Nextgreen Global Berhad have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.
Let's delve deeper into each type of owner of Nextgreen Global Berhad, beginning with the chart below.
See our latest analysis for Nextgreen Global Berhad
What Does The Institutional Ownership Tell Us About Nextgreen Global Berhad?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Nextgreen Global Berhad does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Nextgreen Global Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
Nextgreen Global Berhad is not owned by hedge funds. The company's largest shareholder is Kong Gan, with ownership of 15%. Meanwhile, the second and third largest shareholders, hold 12% and 7.8%, of the shares outstanding, respectively. Thiam Lim, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
We did some more digging and found that 7 of the top shareholders account for roughly 53% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.