If you want to know who really controls Syarikat Takaful Malaysia Keluarga Berhad (KLSE:TAKAFUL), then you'll have to look at the makeup of its share registry. With 66% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.
Let's delve deeper into each type of owner of Syarikat Takaful Malaysia Keluarga Berhad, beginning with the chart below.
See our latest analysis for Syarikat Takaful Malaysia Keluarga Berhad
What Does The Institutional Ownership Tell Us About Syarikat Takaful Malaysia Keluarga 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.
As you can see, institutional investors have a fair amount of stake in Syarikat Takaful Malaysia Keluarga Berhad. 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. 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 Syarikat Takaful Malaysia Keluarga Berhad's earnings history below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Syarikat Takaful Malaysia Keluarga Berhad. Looking at our data, we can see that the largest shareholder is Permodalan Nasional Berhad with 9.0% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.8% and 2.7% of the stock.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant 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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.