Institutions along with retail investors who hold considerable shares inMy E.G. Services Berhad (KLSE:MYEG) come under pressure; lose 5.1% of holdings value
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
My E.G. Services Berhad's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
51% of the business is held by the top 10 shareholders
A look at the shareholders of My E.G. Services Berhad (KLSE:MYEG) can tell us which group is most powerful. With 40% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
While institutions who own 32% came under pressure after market cap dropped to RM6.3b last week,retail investors took the most losses.
In the chart below, we zoom in on the different ownership groups of My E.G. Services Berhad.
What Does The Institutional Ownership Tell Us About My E.G. Services Berhad?
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.
My E.G. Services Berhad 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 My E.G. Services Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
KLSE:MYEG Earnings and Revenue Growth November 3rd 2024
My E.G. Services Berhad is not owned by hedge funds. Our data shows that Asia Internet Holding Sdn. Bhd is the largest shareholder with 14% of shares outstanding. Thean Wong is the second largest shareholder owning 13% of common stock, and Kumpulan Wang Persaraan holds about 5.0% of the company stock. Thean Wong, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
We also observed that the top 10 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of My E.G. Services Berhad
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems insiders own a significant proportion of My E.G. Services Berhad. Insiders own RM882m worth of shares in the RM6.3b company. That's quite meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 40% ownership, the general public, mostly comprising of individual investors, have some degree of sway over My E.G. Services Berhad. 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
We can see that Private Companies own 14%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand My E.G. Services Berhad better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for My E.G. Services Berhad (of which 1 is a bit unpleasant!) 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.
