Institutions along with individual investors who hold considerable shares inV.S. Industry Berhad (KLSE:VS) come under pressure; lose 7.8% of holdings value
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
The considerable ownership by individual investors in V.S. Industry Berhad indicates that they collectively have a greater say in management and business strategy
51% of the business is held by the top 9 shareholders
A look at the shareholders of V.S. Industry Berhad (KLSE:VS) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 36% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Following a 7.8% decrease in the stock price last week, individual investors suffered the most losses, but institutions who own 36% stock also took a hit.
Let's delve deeper into each type of owner of V.S. Industry Berhad, beginning with the chart below.
What Does The Institutional Ownership Tell Us About V.S. Industry 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 V.S. Industry 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at V.S. Industry Berhad's earnings history below. Of course, the future is what really matters.
KLSE:VS Earnings and Revenue Growth July 29th 2024
Hedge funds don't have many shares in V.S. Industry Berhad. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In V.S. Industry Berhad's case, its Top Key Executive, Kim Beh, is the largest shareholder, holding 15% of shares outstanding. For context, the second largest shareholder holds about 8.0% of the shares outstanding, followed by an ownership of 6.4% by the third-largest shareholder. Furthermore, CEO Sem Yam Gan is the owner of 5.2% of the company's shares.
We did some more digging and found that 9 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of V.S. Industry 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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own a reasonable proportion of V.S. Industry Berhad. Insiders have a RM1.3b stake in this RM4.6b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public-- including retail investors -- own 36% stake in the company, and hence can't easily be ignored. 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.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for V.S. Industry Berhad you should be aware of.
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.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
