While insiders own 25% of CCK Consolidated Holdings Berhad (KLSE:CCK), private companies are its largest shareholders with 44% ownership
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
The considerable ownership by private companies in CCK Consolidated Holdings Berhad indicates that they collectively have a greater say in management and business strategy
A total of 3 investors have a majority stake in the company with 54% ownership
To get a sense of who is truly in control of CCK Consolidated Holdings Berhad (KLSE:CCK), it is important to understand the ownership structure of the business. With 44% stake, private companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Individual insiders, on the other hand, account for 25% of the company's stockholders. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.
Let's delve deeper into each type of owner of CCK Consolidated Holdings Berhad, beginning with the chart below.
What Does The Institutional Ownership Tell Us About CCK Consolidated Holdings Berhad?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
We can see that CCK Consolidated Holdings Berhad 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. 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 CCK Consolidated Holdings Berhad's earnings history below. Of course, the future is what really matters.
KLSE:CCK Earnings and Revenue Growth December 1st 2024
We note that hedge funds don't have a meaningful investment in CCK Consolidated Holdings Berhad. Our data shows that S. K. Tiong Enterprise Sdn. Bhd. is the largest shareholder with 39% of shares outstanding. For context, the second largest shareholder holds about 9.2% of the shares outstanding, followed by an ownership of 5.4% by the third-largest shareholder. Interestingly, the bottom two of the top three shareholders also hold the title of Head of Marketing and Chairman of the Board, respectively, suggesting that these insiders have a personal stake in the company. Additionally, the company's CEO Chiong Tiong directly holds 0.7% of the total shares outstanding.
After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.
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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of CCK Consolidated Holdings Berhad
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
It seems insiders own a significant proportion of CCK Consolidated Holdings Berhad. Insiders own RM245m worth of shares in the RM975m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 25% stake in CCK Consolidated Holdings Berhad. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Company Ownership
Our data indicates that Private Companies hold 44%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand CCK Consolidated Holdings Berhad better, we need to consider many other factors. Take risks for example - CCK Consolidated Holdings Berhad has 2 warning signs (and 1 which can't be ignored) we think you should know about.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
