A look at the shareholders of Union Gas Holdings Limited (SGX:1F2) can tell us which group is most powerful. The group holding the most number of shares in the company, around 47% to be precise, is individual insiders. 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 take a closer look to see what the different types of shareholders can tell us about Union Gas Holdings.

Check out our latest analysis for Union Gas Holdings

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

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. Union Gas Holdings might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Union Gas Holdings is not owned by hedge funds. Union Energy Corporation Pte Ltd is currently the largest shareholder, with 36% of shares outstanding. Kiang Ang Teo is the second largest shareholder owning 26% of common stock, and Hark Piang Teo holds about 8.0% of the company stock. Note that the second and third-largest shareholders are also Top Key Executive and Member of the Board of Directors, respectively, meaning that the company's top shareholders are insiders.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Union Gas Holdings

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.