The recent 10% gain must have brightened CEO Pui Hee Chow's week, Samaiden Group Berhad's (KLSE:SAMAIDEN) most bullish insider

Key Insights

• Significant insider control over Samaiden Group Berhad implies vested interests in company growth
• 52% of the business is held by the top 2 shareholders
• Institutional ownership in Samaiden Group Berhad is 15%

If you want to know who really controls Samaiden Group Berhad (KLSE:SAMAIDEN), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 54% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit RM481m market cap following a 10% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Samaiden Group Berhad.

See our latest analysis for Samaiden Group Berhad

What Does The Institutional Ownership Tell Us About Samaiden Group 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 Samaiden Group Berhad does have institutional investors; and they hold a good portion of the company's stock. 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 Samaiden Group Berhad's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Samaiden Group Berhad. Looking at our data, we can see that the largest shareholder is the CEO Pui Hee Chow with 31% of shares outstanding. For context, the second largest shareholder holds about 21% of the shares outstanding, followed by an ownership of 14% by the third-largest shareholder. Interestingly, the second-largest shareholder, Yeng Foon Fong is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 Samaiden Group Berhad

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Samaiden Group Berhad. This means they can collectively make decisions for the company. Given it has a market cap of RM481m, that means they have RM259m worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 17% stake in Samaiden Group 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.

Public Company Ownership

We can see that public companies hold 14% of the Samaiden Group 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Samaiden Group Berhad (including 1 which makes us a bit uncomfortable) .

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.