Malayan Flour Mills Berhad's (KLSE:MFLOUR) largest shareholders are individual investors with 34% ownership, insiders own 30%
Key Insights
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Malayan Flour Mills Berhad's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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The top 11 shareholders own 51% of the company
Every investor in Malayan Flour Mills Berhad (KLSE:MFLOUR) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 34% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Individual insiders, on the other hand, account for 30% of the company's stockholders. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.
In the chart below, we zoom in on the different ownership groups of Malayan Flour Mills Berhad.
View our latest analysis for Malayan Flour Mills Berhad
What Does The Institutional Ownership Tell Us About Malayan Flour Mills 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 Malayan Flour Mills Berhad. 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 Malayan Flour Mills Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Malayan Flour Mills Berhad. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Malayan Flour Mills Berhad's case, its Senior Key Executive, Wee Teh, is the largest shareholder, holding 16% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.4% and 5.4% of the stock.
A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.
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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.