A look at the shareholders of Inari Amertron Berhad (KLSE:INARI) can tell us which group is most powerful. The group holding the most number of shares in the company, around 49% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Institutional investors would probably welcome last week's 4.6% increase in share prices after a year of 25% losses as a sign that returns are likely to begin trending higher.
In the chart below, we zoom in on the different ownership groups of Inari Amertron Berhad.
Check out our latest analysis for Inari Amertron Berhad
What Does The Institutional Ownership Tell Us About Inari Amertron 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 Inari Amertron Berhad does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Inari Amertron Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.
We note that hedge funds don't have a meaningful investment in Inari Amertron Berhad. Insas Berhad is currently the company's largest shareholder with 14% of shares outstanding. Employees Provident Fund of Malaysia is the second largest shareholder owning 10% of common stock, and Kumpulan Wang Persaraan holds about 9.4% of the company stock. Additionally, the company's CEO Kean Lau directly holds 1.3% of the total shares outstanding.
A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Inari Amertron Berhad
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.