Yahoo Finance Private companies account for 46% of D & O Green Technologies Berhad's (KLSE:D&O) ownership, while insiders account for 20%
Key Insights
D & O Green Technologies Berhad's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
54% of the business is held by the top 6 shareholders
To get a sense of who is truly in control of D & O Green Technologies Berhad (KLSE:D&O), it is important to understand the ownership structure of the business. With 46% stake, private companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, individual insiders make up 20% of the company’s shareholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
Let's delve deeper into each type of owner of D & O Green Technologies Berhad, beginning with the chart below.
Check out our latest analysis for D & O Green Technologies Berhad
What Does The Institutional Ownership Tell Us About D & O Green Technologies 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 D & O Green Technologies Berhad. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 D & O Green Technologies Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
D & O Green Technologies Berhad is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Golden Horizon Resources Limited with 11% of shares outstanding. Han Tang International Holdings Limited is the second largest shareholder owning 10% of common stock, and Qingdao City Construction Investment (Group) Co.,Ltd holds about 9.5% of the company stock. Additionally, the company's CEO Kheng Tay directly holds 1.5% of the total shares outstanding.
On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of D & O Green Technologies Berhad
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
It seems insiders own a significant proportion of D & O Green Technologies Berhad. It has a market capitalization of just RM5.8b, and insiders have RM1.2b worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.
General Public Ownership
The general public-- including retail investors -- own 14% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
We can see that Private Companies own 46%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand D & O Green Technologies Berhad better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with D & O Green Technologies Berhad .
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
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.
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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.
