Fraser & Neave Holdings Bhd's (KLSE:F&N) largest shareholders are private companies with 55% ownership, institutions own 24%
Key Insights
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The considerable ownership by private companies in Fraser & Neave Holdings Bhd indicates that they collectively have a greater say in management and business strategy
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TCC Assets Limited owns 55% of the company
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Institutional ownership in Fraser & Neave Holdings Bhd is 24%
Every investor in Fraser & Neave Holdings Bhd (KLSE:F&N) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are private companies with 55% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And institutions on the other hand have a 24% ownership in the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
Let's take a closer look to see what the different types of shareholders can tell us about Fraser & Neave Holdings Bhd.
View our latest analysis for Fraser & Neave Holdings Bhd
What Does The Institutional Ownership Tell Us About Fraser & Neave Holdings 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.
Fraser & Neave Holdings Bhd 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 Fraser & Neave Holdings Bhd, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in Fraser & Neave Holdings Bhd. TCC Assets Limited is currently the largest shareholder, with 55% of shares outstanding. This implies that they have majority interest control of the future of the company. With 11% and 9.5% of the shares outstanding respectively, Employees Provident Fund of Malaysia and Permodalan Nasional Berhad are the second and third largest shareholders.
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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.