EcoFirst Consolidated Bhd (KLSE:ECOFIRS) insiders have significant skin in the game with 67% ownership
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
Insiders appear to have a vested interest in EcoFirst Consolidated Bhd's growth, as seen by their sizeable ownership
A total of 7 investors have a majority stake in the company with 54% ownership
Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
Every investor in EcoFirst Consolidated Bhd (KLSE:ECOFIRS) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 67% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
So, insiders of EcoFirst Consolidated Bhd 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.
In the chart below, we zoom in on the different ownership groups of EcoFirst Consolidated Bhd.
KLSE:ECOFIRS Ownership Breakdown December 2nd 2024
What Does The Institutional Ownership Tell Us About EcoFirst Consolidated Bhd?
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.
Institutions have a very small stake in EcoFirst Consolidated Bhd. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.
KLSE:ECOFIRS Earnings and Revenue Growth December 2nd 2024
We note that hedge funds don't have a meaningful investment in EcoFirst Consolidated Bhd. The company's largest shareholder is You Tiong Tan, with ownership of 20%. Seng Teoh is the second largest shareholder owning 8.5% of common stock, and Seng Aun Teoh holds about 5.4% of the company stock. Seng Teoh, who is the second-largest shareholder, also happens to hold the title of Senior Key Executive.
We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of EcoFirst Consolidated Bhd
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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.
It seems that insiders own more than half the EcoFirst Consolidated Bhd stock. This gives them a lot of power. So they have a RM313m stake in this RM467m business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over EcoFirst Consolidated Bhd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
It seems that Private Companies own 9.7%, of the EcoFirst Consolidated Bhd stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Public Company Ownership
Public companies currently own 3.7% of EcoFirst Consolidated Bhd stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
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. Take risks for example - EcoFirst Consolidated Bhd has 4 warning signs (and 2 which are potentially serious) we think you should know about.
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.
