OSK Holdings Berhad (KLSE:OSK) stock most popular amongst private companies who own 50%, while individual investors hold 29%

editorial-team@simplywallst.com (Simply Wall St)

Thu, Oct 19, 2023, 9:36 PM 4 min read

Key Insights

OSK Holdings Berhad's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
The largest shareholder of the company is Yellow Rock (L) Foundation with a 50% stake
13% of OSK Holdings Berhad is held by insiders

Every investor in OSK Holdings Berhad (KLSE:OSK) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 50% to be precise, is private companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Individual investors, on the other hand, account for 29% of the company's stockholders.

In the chart below, we zoom in on the different ownership groups of OSK Holdings Berhad.

See our latest analysis for OSK Holdings Berhad

ownership-breakdown — KLSE:OSK Ownership Breakdown October 20th 2023

What Does The Institutional Ownership Tell Us About OSK Holdings 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 OSK Holdings 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. 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 OSK Holdings Berhad's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — KLSE:OSK Earnings and Revenue Growth October 20th 2023

Hedge funds don't have many shares in OSK Holdings Berhad. Yellow Rock (L) Foundation is currently the company's largest shareholder with 50% of shares outstanding. This implies that they have majority interest control of the future of the company. Meanwhile, the second and third largest shareholders, hold 3.2% and 2.5%, of the shares outstanding, respectively. Leong Huat Ong, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Furthermore, CEO Ju Ong is the owner of 1.3% of the company's shares.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of OSK Holdings Berhad

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

Our most recent data indicates that insiders own a reasonable proportion of OSK Holdings Berhad. It has a market capitalization of just RM2.4b, and insiders have RM317m worth of shares in their own names. 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 29% stake in the company, and hence can't easily be ignored. 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

It seems that Private Companies own 50%, of the OSK Holdings Berhad stock. 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 OSK Holdings Berhad better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with OSK Holdings Berhad .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.