Yahoo Finance Sovereign wealth funds account for 53% of Velesto Energy Berhad's (KLSE:VELESTO) ownership, while individual investors account for 23%
Key Insights
Velesto Energy Berhad's significant sovereign wealth funds ownership suggests that the key decisions are influenced by shareholders from the larger public
53% of the company is held by a single shareholder (Permodalan Nasional Berhad)
Every investor in Velesto Energy Berhad (KLSE:VELESTO) should be aware of the most powerful shareholder groups. We can see that sovereign wealth funds own the lion's share in the company with 53% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And individual investors on the other hand have a 23% ownership in the company.
Let's take a closer look to see what the different types of shareholders can tell us about Velesto Energy Berhad.
View our latest analysis for Velesto Energy Berhad
What Does The Institutional Ownership Tell Us About Velesto Energy 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.
We can see that Velesto Energy Berhad does have institutional investors; and they hold a good portion of the company's stock. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Velesto Energy Berhad's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Velesto Energy Berhad. Permodalan Nasional Berhad is currently the company's largest shareholder with 53% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Hong Leong Asset Management Bhd. is the second largest shareholder owning 7.8% of common stock, and Urusharta Jamaah Sdn Bhd holds about 3.5% of the company stock.
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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Velesto Energy Berhad
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that Velesto Energy Berhad insiders own under 1% of the company. It appears that the board holds about RM14m worth of stock. This compares to a market capitalization of RM2.1b. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.
General Public Ownership
With a 23% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Velesto Energy Berhad. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.
