In spite of recent selling, insiders still control 74% of Memiontec Holdings Ltd. (Catalist:TWL)

Every investor in Memiontec Holdings Ltd. (Catalist:TWL) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 74% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And insiders own the top position in the company’s share registry despite recent sales.

Let's take a closer look to see what the different types of shareholders can tell us about Memiontec Holdings.

Check out our latest analysis for Memiontec Holdings

ownership-breakdown
Catalist:TWL Ownership Breakdown November 1st 2022

What Does The Lack Of Institutional Ownership Tell Us About Memiontec Holdings?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Memiontec Holdings, for yourself, below.

earnings-and-revenue-growth
Catalist:TWL Earnings and Revenue Growth November 1st 2022

We note that hedge funds don't have a meaningful investment in Memiontec Holdings. Looking at our data, we can see that the largest shareholder is the CEO Kiat Seng Tay with 53% of shares outstanding. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. In comparison, the second and third largest shareholders hold about 12% and 5.3% of the stock. Interestingly, the third-largest shareholder, Soelistyo Dewi Soegiharto is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

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. 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 Memiontec Holdings

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.