FST Corp.'s (NASDAQ:KBSX) market cap dropped US$303m last week; Individual investors bore the brunt

editorial-team@simplywallst.com (Simply Wall St)

Thu, Jan 23, 2025, 4:40 AM 4 min read

FST's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
The top 5 shareholders own 43% of the company
Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in FST Corp. (NASDAQ:KBSX) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 57% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to US$415m last week, individual investors would have faced the highest losses than any other shareholder groups of the company.

In the chart below, we zoom in on the different ownership groups of FST.

See our latest analysis for FST

ownership-breakdown — NasdaqGM:KBSX Ownership Breakdown January 23rd 2025

What Does The Institutional Ownership Tell Us About FST?

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.

Less than 5% of FST is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

earnings-and-revenue-growth — NasdaqGM:KBSX Earnings and Revenue Growth January 23rd 2025

Hedge funds don't have many shares in FST. Far East Machinery Co., Ltd. is currently the company's largest shareholder with 27% of shares outstanding. David Chuang is the second largest shareholder owning 7.2% of common stock, and Chiayi Sports Equipment Co., Ltd. holds about 6.3% of the company stock.

Our studies suggest that the top 5 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 FST

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. 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.

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 most recent data indicates that insiders own some shares in FST Corp.. It has a market capitalization of just US$415m, and insiders have US$30m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public -- including retail investors -- own 57% of FST. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

It seems that Private Companies own 33%, of the FST stock. 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. To that end, you should be aware of the 2 warning signs we've spotted with FST .

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.