To get a sense of who is truly in control of LPI Capital Bhd (KLSE:LPI), it is important to understand the ownership structure of the business. With 45% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Institutions, on the other hand, account for 28% of the company's stockholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.

Let's take a closer look to see what the different types of shareholders can tell us about LPI Capital Bhd.

See our latest analysis for LPI Capital Bhd

What Does The Institutional Ownership Tell Us About LPI Capital 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.

We can see that LPI Capital Bhd 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. 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 LPI Capital Bhd, (below). Of course, keep in mind that there are other factors to consider, too.

LPI Capital Bhd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Consolidated Teh Holdings Sdn Berhad with 43% of shares outstanding. Public Mutual Berhad is the second largest shareholder owning 9.4% of common stock, and Sompo Asset Management Co.,Ltd. holds about 8.5% of the company stock.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 52% stake.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of LPI Capital Bhd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.