This is what the shareholding structure of Press Metal Aluminum Holdings Berhad (KLSE: PMETAL) looks like

If you want to know who really controls Press Metal Aluminum Holdings Berhad (KLSE: PMETAL), then you will have to look at the makeup of its share register. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. I like to see at least a little insider ownership. As Charlie Munger said, “Show me the incentive and I’ll show you the result.

With a market capitalization of RM48b, Press Metal Aluminum Holdings Berhad is rather large. We would expect to see institutional investors on the register. Companies of this size are also generally well known to retail investors. Looking at our data on ownership groups (below), it looks like institutional investors have bought the company. We can zoom in on the different ownership groups, to find out more about Press Metal Aluminum Holdings Berhad.

See our latest review for Press Metal Aluminum Holdings Berhad

KLSE ownership breakdown: PMETAL September 9, 2021

What does institutional ownership tell us about Press Metal Aluminum Holdings Berhad?

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 businesses to have some institutions listed, especially if they are growing.

As you can see, institutional investors own a large stake in Press Metal Aluminum Holdings Berhad. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they can be 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 without a history of growth. You can see Press Metal Aluminum Holdings Berhad’s historical earnings and earnings below, but keep in mind that there is always more to tell.

profit and revenue growth
KLSE: PMETAL Profits and Revenue Growth September 9, 2021

Press Metal Aluminum Holdings Berhad is not owned by hedge funds. Our data shows that Alpha Milestone Sdn Bhd. is the largest shareholder with 22% of the shares outstanding. For context, the second largest shareholder owns around 16% of the outstanding shares, followed by an 8.4% stake by the third largest shareholder. Interestingly, the last two of the top three shareholders also hold the title of CEO and Vice President, respectively, which suggests that these insiders have a personal stake in the company.

Our research also shed light on the fact that approximately 54% of the company is controlled by the 4 largest shareholders, which suggests that these owners exercise significant influence over the company.

While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.

Insider property of Press Metal Aluminum Holdings Berhad

The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

It appears that insiders own a significant proportion of Press Metal Aluminum Holdings Berhad. Insiders own RM19 billion of shares in the company RM48b. It is quite significant. It’s good to see this level of investment. You can check here if these insiders have bought recently.

General public property

The general public, with a 27% stake in the company, will not be easily ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.

Owned by a private company

Our data indicates that private companies own 22% of the company’s shares. It is difficult to draw conclusions from this fact alone, so it is worth considering who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next steps:

While it is worth considering the different groups that own a business, there are other factors that are even more important. Take risks for example – Press Metal Aluminum Holdings Berhad a 1 warning sign we think you should be aware.

But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better 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 any of the stocks mentioned.
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