Jentayu Sustainables Berhad (KLSE:JSB) Top Key Executive Beroz bin Mirdin, the company's largest shareholder sees 12%reduction in holdings value

Key Insights

• Jentayu Sustainables Berhad's significant insider ownership suggests inherent interests in company's expansion
• The top 8 shareholders own 50% of the company
• Institutional ownership in Jentayu Sustainables Berhad is 10%

To get a sense of who is truly in control of Jentayu Sustainables Berhad (KLSE:JSB), it is important to understand the ownership structure of the business. With 58% stake, individual insiders 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.

And last week, insiders endured the biggest losses as the stock fell by 12%.

In the chart below, we zoom in on the different ownership groups of Jentayu Sustainables Berhad.

See our latest analysis for Jentayu Sustainables Berhad

What Does The Institutional Ownership Tell Us About Jentayu Sustainables 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 Jentayu Sustainables Berhad. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Jentayu Sustainables Berhad's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Jentayu Sustainables Berhad. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Jentayu Sustainables Berhad's case, its Top Key Executive, Beroz bin Mirdin, is the largest shareholder, holding 20% of shares outstanding. With 9.3% and 4.4% of the shares outstanding respectively, Morgan Stanley, Investment Banking and Brokerage Investments and Abdullah bin Husain are the second and third largest shareholders. Additionally, the company's CEO Jeefri bin Muhamad Yusup directly holds 4.0% of the total shares outstanding.

We did some more digging and found that 8 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. 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 Jentayu Sustainables Berhad

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Our most recent data indicates that insiders own the majority of Jentayu Sustainables Berhad. This means they can collectively make decisions for the company. Given it has a market cap of RM500m, that means they have RM289m worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 27% stake in Jentayu Sustainables Berhad. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jentayu Sustainables Berhad better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Jentayu Sustainables Berhad you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.