Key Insights
-
Formosa Prosonic Industries Berhad's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
-
The top 12 shareholders own 51% of the company
To get a sense of who is truly in control of Formosa Prosonic Industries Berhad (KLSE:FPI), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 41% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Public companies, on the other hand, account for 29% of the company's stockholders.
Let's delve deeper into each type of owner of Formosa Prosonic Industries Berhad, beginning with the chart below.
See our latest analysis for Formosa Prosonic Industries Berhad
What Does The Institutional Ownership Tell Us About Formosa Prosonic Industries 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 Formosa Prosonic Industries 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. 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 Formosa Prosonic Industries Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Formosa Prosonic Industries Berhad. The company's largest shareholder is Wistron Corporation, with ownership of 27%. Meanwhile, the second and third largest shareholders, hold 5.1% and 3.2%, of the shares outstanding, respectively. Chao Yuan Shih, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.
Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 12 shareholders, meaning that no single shareholder has a majority interest in the ownership.
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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.