SFP Tech Holdings Berhad's (KLSE:SFPTECH) most bullish insider, Senior Key Executive Beng Huat Keoh must be pleased with the recent 19% gain

Key Insights

• Significant insider control over SFP Tech Holdings Berhad implies vested interests in company growth
• Beng Huat Keoh owns 65% of the company
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

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If you want to know who really controls SFP Tech Holdings Berhad (KLSE:SFPTECH), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 74% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by RM72m last week.

In the chart below, we zoom in on the different ownership groups of SFP Tech Holdings Berhad.

See our latest analysis for SFP Tech Holdings Berhad

What Does The Institutional Ownership Tell Us About SFP Tech Holdings 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.

SFP Tech Holdings Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 SFP Tech Holdings Berhad's earnings history below. Of course, the future is what really matters.

SFP Tech Holdings Berhad is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In SFP Tech Holdings Berhad's case, its Senior Key Executive, Beng Huat Keoh, is the largest shareholder, holding 65% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 3.9% and 2.0%, of the shares outstanding, respectively.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of SFP Tech Holdings Berhad

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 SFP Tech Holdings Berhad. This means they can collectively make decisions for the company. Given it has a market cap of RM456m, that means they have RM339m 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-- including retail investors -- own 19% stake in the company, and hence can't easily be ignored. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand SFP Tech Holdings Berhad better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with SFP Tech Holdings Berhad .

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.