In This Article:
Key Insights
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Significantly high institutional ownership implies APAC Realty's stock price is sensitive to their trading actions
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The largest shareholder of the company is Morgan Stanley Investment Management Inc. with a 65% stake
A look at the shareholders of APAC Realty Limited (SGX:CLN) can tell us which group is most powerful. With 65% stake, institutions possess the maximum shares in the company. 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. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.
In the chart below, we zoom in on the different ownership groups of APAC Realty.
See 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 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. 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 APAC Realty, (below). Of course, keep in mind that there are other factors to consider, too.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in APAC Realty. Morgan Stanley Investment Management Inc. is currently the company's largest shareholder with 65% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. For context, the second largest shareholder holds about 8.4% of the shares outstanding, followed by an ownership of 0.4% by the third-largest shareholder. Khee Hak Chua, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.