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The big shareholder groups in Thai Beverage Public Company Limited (SGX:Y92) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.’
Thai Beverage is a pretty big company. It has a market capitalization of S$16.4b. Normally institutions would own a significant portion of a company this size. In the chart below below, we can see that institutions are noticeable on the share registry. Let’s take a closer look to see what the different types of shareholder can tell us about Y92.
See our latest analysis for Thai Beverage
What Does The Institutional Ownership Tell Us About Thai Beverage?
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.
As you can see, institutional investors own 11% of Thai Beverage. 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. 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 Thai Beverage’s earnings history, below. Of course, the future is what really matters.
We note that hedge funds don’t have a meaningful investment in Thai Beverage. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Thai Beverage
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.
I can report that insiders do own shares in Thai Beverage Public Company Limited. Insiders own S$848m worth of shares (at current prices). It is good to see this level of investment. You can check here to see if those insiders have been buying recently.