In This Article:
Every investor in Sime Darby Property Berhad (KLSE:SIMEPROP) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are sovereign wealth funds with 57% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Institutions, on the other hand, account for 27% of the company's stockholders. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.
Let's take a closer look to see what the different types of shareholders can tell us about Sime Darby Property Berhad.
Check out our latest analysis for Sime Darby Property Berhad
What Does The Institutional Ownership Tell Us About Sime Darby Property Berhad?
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.
Sime Darby Property Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Sime Darby Property Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Sime Darby Property Berhad. Our data shows that Permodalan Nasional Berhad is the largest shareholder with 57% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 9.2% of the shares outstanding, followed by an ownership of 6.4% by the third-largest shareholder.
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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Sime Darby Property Berhad
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.