With 52% institutional ownership, Innoprise Plantations Berhad (KLSE:INNO) is a favorite amongst the big guns
The fact that institutions possess a considerable amount of shares in Innoprise Plantations Berhad signifies that they hold significant sway over the company's stock value.
The company is 50% owned by Yayasan Sabah Group, which serves as its endowment arm.
The historical achievements of a company, coupled with information about who owns it, ultimately provide a solid perception of the potential future success of a business.
If you are curious about who truly holds the reins at Innoprise Plantations Berhad (KLSE:INNO), then the composition of its share registry will provide the answer. The company's institutional investors dominate the scene with a significant 52% ownership stake. This means that these organizations have the most at stake in terms of their investment in the company, for better or for worse.
Because institutions have access to large amounts of money, their actions in the market are closely watched by individual investors. Therefore, when a significant amount of institutional funds is invested in a company, it is typically seen as a desirable quality.
Let's explore further into every category of Innoprise Plantations Berhad's owner, starting with the diagram provided.
Take a look at our most recent analysis for Innoprise Plantations Berhad.
Insight From Innoprise Plantations Berhad's Ownership
Large investors often assess their performance by comparing it to a widely tracked index. Therefore, they tend to contemplate investing in prominent corporations that form part of the corresponding benchmark index.
It is evident that Innoprise Plantations Berhad has institutional investors who own a significant portion of the company's stocks. This suggests that the company has gained credibility within the investment community. Nevertheless, it is essential to exercise caution when placing too much reliance on the validation provided by institutional investors, as they are also prone to making mistakes. When multiple institutions own shares of a particular company, there is always a risk of a 'crowded trade'. In such situations, if the trade goes wrong, there may be a rush to sell stocks, leading to a competitive selling environment. This risk is particularly elevated in companies that lack a proven track record of growth. While you can refer to Innoprise Plantations Berhad's historical earnings and revenue below, it is crucial to remember that there are always additional factors to consider in the complete story.
More than half of the company is owned by big investors, who can likely have a great deal of power in shaping the decisions made by the board. Innoprise Plantations Berhad is not under the ownership of hedge funds. Our information indicates that Yayasan Sabah Group, Endowment Arm holds the majority of shares with 50% of the total. This essentially implies that they have significant influence, if not complete control, over the future of the company. On the other hand, the second and third largest shareholders possess 22% and 1.8% of the total shares respectively.
It is logical to analyze the data on a company's institutional ownership, but it is also wise to examine the opinions of analysts to understand the prevailing direction. The stock has received some analyst attention, but it has the potential to gain further recognition in due course.
The meaning of "company insiders" may differ depending on the jurisdiction, making it a subjective term. Our information focuses on specific individuals within the company, including at least board members. The board is the authority to which management reports. Nevertheless, it is quite common for managers to also hold positions on the executive board, particularly if they are the company's founder or CEO.
In my opinion, having insiders own a significant stake in a company is typically beneficial. Nonetheless, there are instances when it can pose challenges for other shareholders in holding the board responsible for their choices.
The fact that individuals within Innoprise Plantations Berhad possess shares is likely to catch the attention of individuals investing in the company. The company's total market value is RM613m, and these insiders have approximately RM43m worth of shares under their own names. It is encouraging to observe some level of investment from insiders, although we generally prefer to witness larger insider stakes. It may prove advantageous to investigate whether these insiders have engaged in recent purchasing activities.
The ordinary people, including individuals who invest in the company, hold a 17% ownership share. This means they cannot be disregarded easily. Although they may not have the power to make all the decisions, they can definitely exert a significant impact on the company's operations.
It is evident that the shares of Innoprise Plantations Berhad are owned by public corporations, constituting 22% of the total shares available. This ownership could be driven by a strategic motive, indicating a potential alignment of business interests between the two entities. Another possibility is that they have separated from each other. It would be advisable to delve deeper into this ownership to gain more insights.
I am fascinated by examining the ownership of a company and delving deeper into other relevant details to gain a comprehensive understanding. Hence, it is crucial to familiarize yourself with the 2 cautionary indicators we have identified in relation to Innoprise Plantations Berhad (including one that is worrisome).
However, in the end, it is the upcoming times, rather than the previous ones, that will have the final say on the success of the business owners. Thus, we suggest considering this complimentary report that reveals analysts' predictions about a more promising future.
Please note that the statistics mentioned in this blog post are based on information gathered over the past year. These numbers pertain to the period of 12 months leading up to the final day of the month indicated on the financial statement. It is important to understand that these figures may not align with the overall annual report data for the entire year.
Do you have any thoughts on this article? Worried about the information? Contact us directly. Otherwise, send an email to editorial-team (at) simplywallst.com.
This blog post from Simply Wall St has a broad focus. We offer insights based on past information and expert predictions using a fair approach. Our articles are not meant to serve as financial guidance. They do not suggest whether you should purchase or sell any stocks and do not consider your personal goals or financial circumstances. Our goal is to provide in-depth analysis based on essential data with a long-term perspective. Please note that our analysis may not include the most recent company announcements or qualitative content that may have an impact on stock prices. Simply Wall St does not hold any positions in the stocks mentioned.
Participate in a Paid User Research Session and get rewarded with a US$30 Amazon Gift card. Your valuable input will assist us in developing improved investing tools tailored to individual investors like you. Register now by clicking here.
