Owning 46% in Boustead Singapore Limited (SGX:F9D) means that insiders are heavily invested in the company's future

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

Thu, May 15, 2025, 1:42 AM 4 min read

A look at the shareholders of Boustead Singapore Limited (SGX:F9D) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 46% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

So, insiders of Boustead Singapore have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.

In the chart below, we zoom in on the different ownership groups of Boustead Singapore.

See our latest analysis for Boustead Singapore

ownership-breakdown — SGX:F9D Ownership Breakdown May 15th 2025

What Does The Institutional Ownership Tell Us About Boustead Singapore?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Boustead Singapore does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Boustead Singapore's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth — SGX:F9D Earnings and Revenue Growth May 15th 2025

Boustead Singapore is not owned by hedge funds. The company's CEO Fong Fui Wong is the largest shareholder with 44% of shares outstanding. With 8.8% and 4.9% of the shares outstanding respectively, FMR LLC and Fidelity International Ltd are the second and third largest shareholders.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Boustead Singapore

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 Boustead Singapore Limited. Insiders have a S$238m stake in this S$516m business. 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 36% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Boustead Singapore better, we need to consider many other factors. Take risks for example - Boustead Singapore has 2 warning signs (and 1 which is a bit concerning) we think you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.