With 59% ownership, Hextar Technologies Solutions Berhad (KLSE:HEXTECH) insiders have a lot at stake

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editorial-team@simplywallst.com (Simply Wall St)

Tue, Nov 26, 2024, 5:42 PM 4 min read

Key Insights

Insiders appear to have a vested interest in Hextar Technologies Solutions Berhad's growth, as seen by their sizeable ownership
Chong-Yi Ong owns 55% of the company
Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of Hextar Technologies Solutions Berhad (KLSE:HEXTECH) can tell us which group is most powerful. The group holding the most number of shares in the company, around 59% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

So it follows, every decision made by insiders of Hextar Technologies Solutions Berhad regarding the company's future would be crucial to them.

Let's take a closer look to see what the different types of shareholders can tell us about Hextar Technologies Solutions Berhad.

See our latest analysis for Hextar Technologies Solutions Berhad

ownership-breakdown — KLSE:HEXTECH Ownership Breakdown November 27th 2024

What Does The Institutional Ownership Tell Us About Hextar Technologies Solutions 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.

Since institutions own only a small portion of Hextar Technologies Solutions Berhad, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

earnings-and-revenue-growth — KLSE:HEXTECH Earnings and Revenue Growth November 27th 2024

Hextar Technologies Solutions Berhad is not owned by hedge funds. Chong-Yi Ong is currently the largest shareholder, with 55% of shares outstanding. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 4.9% and 4.3% of the stock.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Hextar Technologies Solutions Berhad

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.

It seems that insiders own more than half the Hextar Technologies Solutions Berhad stock. This gives them a lot of power. That means they own RM1.3b worth of shares in the RM2.1b company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 16% stake in Hextar Technologies Solutions Berhad. 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 20%, 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Hextar Technologies Solutions Berhad has 1 warning sign 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.