Do the institutions own AMMB Holdings Berhad (KLSE: AMBANK) shares?

The large shareholder groups of AMMB Holdings Berhad (KLSE: AMBANK) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

With a market cap of RM 10 billion, AMMB Holdings Berhad is a decent size, so it’s probably on the radar of institutional investors. Our analysis of company ownership, below, shows that institutions are visible on the share register. Let’s dig deeper into each type of owner, to find out more about AMMB Holdings Berhad.

Check out our latest review for AMMB Holdings Berhad

Breakdown of KLSE ownership: AMBANK September 2, 2021

What does institutional ownership tell us about AMMB Holdings Berhad?

Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.

We can see that AMMB Holdings Berhad has institutional investors; and they own a good portion of the company’s shares. This may indicate that the company has a certain degree of credibility in the investment community. However, it’s best to beware of relying on the so-called validation that comes with institutional investors. They too are sometimes wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company with no history of growth. You can see AMMB Holdings Berhad’s historical earnings and earnings below, but keep in mind that there is always more to tell.

profit and revenue growth
KLSE: AMBANK Profits and Revenue Growth September 2, 2021

Hedge funds don’t have a lot of shares in AMMB Holdings Berhad. Australia and New Zealand Banking Group Limited is currently the largest shareholder, with 22% of the shares outstanding. Meanwhile, the second and third largest shareholders hold 12% and 9.7% of the outstanding shares, respectively.

Looking further, we found that 51% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a say in the decisions of the company.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.

Insider ownership of AMMB Holdings Berhad

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.

Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Shareholders would likely be interested to learn that insiders hold shares in AMMB Holdings Berhad. It’s a pretty big company, so it’s generally positive to see a potentially meaningful alignment. In this case, they own around RM169 million of shares (at current prices). Most would say it shows the alignment of interests between shareholders and the board. Still, it might be worth checking out if these insiders have sold.

General public property

The general public has a 26% stake in AMMB Holdings Berhad. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.

Owned by a private company

We note that private companies hold 14% of the issued shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as an individual. While it is difficult to draw general conclusions, it should be noted that this is an additional area of ​​research.

Public enterprise ownership

State-owned companies currently own 22% of the shares of AMMB Holdings Berhad. It’s hard to say for sure, but it suggests that they have intertwined business interests. This can be a strategic issue, so it’s worth watching this space for changes in ownership.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. Consider risks, for example. Every business has them, and we’ve spotted 1 warning sign for AMMB Holdings Berhad you should know.

If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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