Sern Kou Resources Berhad (KLSE:SERNKOU) insiders have significant skin in the game with 51% ownership

To get a sense of who is truly in control of Sern Kou Resources Berhad (KLSE:SERNKOU), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.

Let's delve deeper into each type of owner of Sern Kou Resources Berhad, beginning with the chart below.

View our latest analysis for Sern Kou Resources Berhad

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KLSE:SERNKOU Ownership Breakdown January 15th 2023

What Does The Institutional Ownership Tell Us About Sern Kou Resources 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.

We can see that Sern Kou Resources 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. 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 Sern Kou Resources Berhad's earnings history below. Of course, the future is what really matters.

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KLSE:SERNKOU Earnings and Revenue Growth January 15th 2023

Hedge funds don't have many shares in Sern Kou Resources Berhad. The company's CEO Peng Sian Low is the largest shareholder with 31% of shares outstanding. In comparison, the second and third largest shareholders hold about 29% and 3.8% of the stock.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 61% stake.

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 Sern Kou Resources Berhad

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.