Key Insights
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Significant insider control over CB Industrial Product Holding Berhad implies vested interests in company growth
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54% of the business is held by the top 3 shareholders
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12% of CB Industrial Product Holding Berhad is held by Institutions
A look at the shareholders of CB Industrial Product Holding Berhad (KLSE:CBIP) can tell us which group is most powerful. With 65% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
So, insiders of CB Industrial Product Holding 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 CB Industrial Product Holding Berhad, beginning with the chart below.
View our latest analysis for CB Industrial Product Holding Berhad
What Does The Institutional Ownership Tell Us About CB Industrial Product Holding 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.
CB Industrial Product Holding Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 CB Industrial Product Holding Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in CB Industrial Product Holding Berhad. The company's CEO Chai Lim is the largest shareholder with 40% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.6% and 5.5% of the stock.
To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.