While institutions invested in Perdana Petroleum Berhad (KLSE:PERDANA) benefited from last week's 17% gain, public companies stood to gain the most

Key Insights

• Significant control over Perdana Petroleum Berhad by public companies implies that the general public has more power to influence management and governance-related decisions

• 63% of the company is held by a single shareholder (Dayang Enterprise Holdings Bhd)

• 18% of Perdana Petroleum Berhad is held by Institutions

To get a sense of who is truly in control of Perdana Petroleum Berhad (KLSE:PERDANA), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 63% to be precise, is public companies. Put another way, the group faces the maximum upside potential (or downside risk).

While public companies were the group that reaped the most benefits after last week’s 17% price gain, institutions also received a 18% cut.

Let's take a closer look to see what the different types of shareholders can tell us about Perdana Petroleum Berhad.

Check out our latest analysis for Perdana Petroleum Berhad

ownership-breakdown

What Does The Institutional Ownership Tell Us About Perdana Petroleum Berhad?

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 Perdana Petroleum Berhad 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. 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 Perdana Petroleum Berhad's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth

Perdana Petroleum Berhad is not owned by hedge funds. Our data shows that Dayang Enterprise Holdings Bhd is the largest shareholder with 63% of shares outstanding. This implies that they have majority interest control of the future of the company. AIA Investment Management Private Limited is the second largest shareholder owning 3.3% of common stock, and Kenanga Investors Bhd. holds about 1.9% of the company stock.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Perdana Petroleum 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.

We can report that insiders do own shares in Perdana Petroleum Berhad. As individuals, the insiders collectively own RM32m worth of the RM1.1b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Perdana Petroleum Berhad. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

We can see that public companies hold 63% of the Perdana Petroleum Berhad shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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. To that end, you should be aware of the 1 warning sign we've spotted with Perdana Petroleum Berhad .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com