How Much Of Asia File Corporation Bhd. (KLSE:ASIAFLE) Do Insiders Own?

If you want to know who really controls Asia File Corporation Bhd. (KLSE:ASIAFLE), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

With a market capitalization of RM415m, Asia File Corporation Bhd is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Asia File Corporation Bhd.

See our latest analysis for Asia File Corporation Bhd

What Does The Institutional Ownership Tell Us About Asia File Corporation Bhd?

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.

Asia File Corporation Bhd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Asia File Corporation Bhd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Asia File Corporation Bhd. With a 47% stake, CEO Soon Lim is the largest shareholder. Permodalan Nasional Berhad is the second largest shareholder owning 19% of common stock, and FMR LLC holds about 6.5% of the company stock.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 Asia File Corporation Bhd

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.

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 Asia File Corporation Bhd.. This means they can collectively make decisions for the company. That means they own RM238m worth of shares in the RM415m company. That's quite meaningful. 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

With a 14% ownership, the general public have some degree of sway over Asia File Corporation Bhd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Asia File Corporation Bhd better, we need to consider many other factors. For example, we've discovered 1 warning sign for Asia File Corporation Bhd that you should be aware of before investing here.

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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