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Key Insights

• Significantly high institutional ownership implies APAC Realty's stock price is sensitive to their trading actions

• 64% of the company is held by a single shareholder (Morgan Stanley Investment Management Inc.)

• 11% of APAC Realty is held by insiders

To get a sense of who is truly in control of APAC Realty Limited (SGX:CLN), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 64% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

Let's take a closer look to see what the different types of shareholders can tell us about APAC Realty.

View our latest analysis for APAC Realty

What Does The Institutional Ownership Tell Us About APAC Realty?

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 APAC Realty does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 APAC Realty's earnings history below. Of course, the future is what really matters.

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in APAC Realty. Morgan Stanley Investment Management Inc. is currently the company's largest shareholder with 64% of shares outstanding. This implies that they have majority interest control of the future of the company. Khee Hak Chua is the second largest shareholder owning 8.3% of common stock, and Weng Kiong Chu holds about 0.4% of the company stock. Khee Hak Chua, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.