Cloudpoint Technology Berhad (KLSE:CLOUDPT) stock most popular amongst private companies who own 37%, while individual investors hold 29%
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
The considerable ownership by private companies in Cloudpoint Technology Berhad indicates that they collectively have a greater say in management and business strategy
A total of 3 investors have a majority stake in the company with 51% ownership
To get a sense of who is truly in control of Cloudpoint Technology Berhad (KLSE:CLOUDPT), it is important to understand the ownership structure of the business. We can see that private companies own the lion's share in the company with 37% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, individual investors make up 29% of the company’s shareholders.
Let's delve deeper into each type of owner of Cloudpoint Technology Berhad, beginning with the chart below.
What Does The Institutional Ownership Tell Us About Cloudpoint Technology Berhad?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in Cloudpoint Technology Berhad. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Cloudpoint Technology Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.
KLSE:CLOUDPT Earnings and Revenue Growth January 1st 2025
Hedge funds don't have many shares in Cloudpoint Technology Berhad. Era Jasakita Sdn Bhd is currently the company's largest shareholder with 34% of shares outstanding. The second and third largest shareholders are Wai Hoong Choong and Choong Cheong Yew, with an equal amount of shares to their name at 8.1%. Interestingly, the bottom two of the top three shareholders also hold the title of Chief Executive Officer and Member of the Board of Directors, respectively, suggesting that these insiders have a personal stake in the company.
A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 51% stake.
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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Cloudpoint Technology Berhad
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders maintain a significant holding in Cloudpoint Technology Berhad. It has a market capitalization of just RM500m, and insiders have RM96m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Cloudpoint Technology 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
We can see that Private Companies own 37%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for Cloudpoint Technology Berhad (1 makes us a bit uncomfortable!) that you should be aware of before investing here.
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.
