Key Insights
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Insiders appear to have a vested interest in Kawan Food Berhad's growth, as seen by their sizeable ownership
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57% of the business is held by the top 3 shareholders
If you want to know who really controls Kawan Food Berhad (KLSE:KAWAN), then you'll have to look at the makeup of its share registry. With 71% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.
Let's take a closer look to see what the different types of shareholders can tell us about Kawan Food Berhad.
Check out our latest analysis for Kawan Food Berhad
What Does The Institutional Ownership Tell Us About Kawan Food 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 Kawan Food Berhad 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 Kawan Food Berhad's earnings history below. Of course, the future is what really matters.
Kawan Food Berhad is not owned by hedge funds. Our data suggests that Thiam Gan, who is also the company's Top Key Executive, holds the most number of shares at 28%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. For context, the second largest shareholder holds about 21% of the shares outstanding, followed by an ownership of 7.0% by the third-largest shareholder. Interestingly, the third-largest shareholder, Thiam Gan is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.
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.
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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.