What you need to know about the investor mix of Golden Agri-Resources Ltd (SGX: E5H)

Every investor in Golden Agri-Resources Ltd (SGX: E5H) should know the most powerful shareholder groups. 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.

Golden Agri-Resources isn’t huge, but it’s not particularly small either. He has a market cap of S $ 3.0 billion, which means he generally expects to see certain institutions listed on the share register. Our analysis of company ownership, below, shows that institutional investors bought the company. Let’s dig deeper into each type of owner, to find out more about Golden Agri-Resources.

See our latest analysis for Golden Agri-Ressources

SGX ownership breakdown: E5H September 29, 2021

What does institutional ownership tell us about Golden Agri-Resources?

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.

As you can see, institutional investors have a significant stake in Golden Agri-Resources. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could 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 Golden Agri-Resources’ historical revenue and revenue below, but keep in mind that there is always more to tell.

profit and revenue growth
SGX: E5H Profits and Revenue Growth September 29, 2021

Our data indicates that hedge funds own 5.1% of Golden Agri-Resources. This catches my attention as hedge funds sometimes try to influence management or make changes that will create short-term shareholder value. Our data shows that PT Sinar Mas Group is the largest shareholder with 51% of the shares outstanding. This implies that they have majority control over the future of the business. Silchester International Investors LLP is the second largest shareholder holding 12% of the ordinary shares, and Bank J. Safra Sarasin AG owns approximately 9.8% of the shares of the company.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.

Insider ownership of Golden Agri-Resources

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.

Our information suggests that insiders of Golden Agri-Resources Ltd own less than 1% of the company. But they can have an indirect interest through a business structure that we have not chosen. It’s a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case, insiders own S $ 2.4 million in shares. Arguably recent purchases and sales are equally important to consider. You can click here to see if any insiders have bought or sold.

General public property

The general public, with a 17% 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

We can see that the private companies own 51% 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.

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. Concrete example: we have spotted 3 warning signs for Golden Agri-Ressources you need to be aware of this, and 2 of them cannot be ignored.

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.

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 does not have any position in the mentioned stocks.

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