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Key Insights

• Venture's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public

• The top 25 shareholders own 45% of the company

• Institutions own 43% of Venture

Every investor in Venture Corporation Limited (SGX:V03) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 48% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, institutions make up 43% of the company’s shareholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

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

Check out our latest analysis for Venture

What Does The Institutional Ownership Tell Us About Venture?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Venture does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Venture, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Venture. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Venture's case, its Top Key Executive, Ngit Liong Wong, is the largest shareholder, holding 7.1% of shares outstanding. The second and third largest shareholders are BlackRock, Inc. and Schroder Investment Management Limited, with an equal amount of shares to their name at 6.1%.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.