P.I.E. Industrial Berhad's (KLSE:PIE) top owners are public companies with 51% stake, while 19% is held by individual investors
Key Insights
-
Significant control over P.I.E. Industrial Berhad by public companies implies that the general public has more power to influence management and governance-related decisions
-
Pan-International Industrial Corp. owns 51% of the company
To get a sense of who is truly in control of P.I.E. Industrial Berhad (KLSE:PIE), it is important to understand the ownership structure of the business. We can see that public companies own the lion's share in the company with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And individual investors on the other hand have a 19% ownership in the company.
In the chart below, we zoom in on the different ownership groups of P.I.E. Industrial Berhad.
View our latest analysis for P.I.E. Industrial Berhad
What Does The Institutional Ownership Tell Us About P.I.E. Industrial Berhad?
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 P.I.E. Industrial Berhad 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 P.I.E. Industrial Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.
P.I.E. Industrial Berhad is not owned by hedge funds. Pan-International Industrial Corp. is currently the company's largest shareholder with 51% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. For context, the second largest shareholder holds about 6.1% of the shares outstanding, followed by an ownership of 5.5% by the third-largest shareholder. In addition, we found that Chung Mui, the CEO has 0.6% of the shares allocated to their name.
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 is some analyst coverage of the stock, but it could still become more well known, with time.