Yahoo Finance Lippo Malls Indonesia Retail Trust (SGX:D5IU) stock most popular amongst public companies who own 47%, while individual investors hold 37%
To get a sense of who is truly in control of Lippo Malls Indonesia Retail Trust (SGX:D5IU), it is important to understand the ownership structure of the business. We can see that public companies own the lion's share in the company with 47% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, individual investors make up 37% of the company’s shareholders.
Let's delve deeper into each type of owner of Lippo Malls Indonesia Retail Trust, beginning with the chart below.
See our latest analysis for Lippo Malls Indonesia Retail Trust
What Does The Institutional Ownership Tell Us About Lippo Malls Indonesia Retail Trust?
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 Lippo Malls Indonesia Retail Trust does have institutional investors; and they hold a good portion of the company's stock. 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 Lippo Malls Indonesia Retail Trust, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Lippo Malls Indonesia Retail Trust. Our data shows that PT Lippo Karawaci Tbk is the largest shareholder with 47% of shares outstanding. Tokyo Century Corporation, Asset Management Arm is the second largest shareholder owning 11% of common stock, and Dimensional Fund Advisors LP holds about 1.3% of the company stock.
After doing some more digging, we found that the top 2 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Lippo Malls Indonesia Retail Trust
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
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.
We can see that insiders own shares in Lippo Malls Indonesia Retail Trust. It has a market capitalization of just S$239m, and insiders have S$2.5m worth of shares, in their own names. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.
General Public Ownership
The general public, who are usually individual investors, hold a 37% stake in Lippo Malls Indonesia Retail Trust. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Public Company Ownership
Public companies currently own 47% of Lippo Malls Indonesia Retail Trust stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Lippo Malls Indonesia Retail Trust better, we need to consider many other factors. Take risks for example - Lippo Malls Indonesia Retail Trust has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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