Stock Analysis

What Kind Of Shareholders Hold The Majority In Panasonic Manufacturing Malaysia Berhad's (KLSE:PANAMY) Shares?

KLSE:PANAMY
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If you want to know who really controls Panasonic Manufacturing Malaysia Berhad (KLSE:PANAMY), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.

Panasonic Manufacturing Malaysia Berhad is a smaller company with a market capitalization of RM1.9b, so it may still be flying under the radar of 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 Panasonic Manufacturing Malaysia Berhad.

Check out our latest analysis for Panasonic Manufacturing Malaysia Berhad

ownership-breakdown
KLSE:PANAMY Ownership Breakdown November 30th 2020

What Does The Institutional Ownership Tell Us About Panasonic Manufacturing Malaysia 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.

Panasonic Manufacturing Malaysia Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Panasonic Manufacturing Malaysia Berhad's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
KLSE:PANAMY Earnings and Revenue Growth November 30th 2020

Hedge funds don't have many shares in Panasonic Manufacturing Malaysia Berhad. Panasonic Corporation is currently the largest shareholder, with 47% of shares outstanding. In comparison, the second and third largest shareholders hold about 14% and 5.2% of the stock.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 62% stake.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Panasonic Manufacturing Malaysia 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 some shares in Panasonic Manufacturing Malaysia Berhad. It has a market capitalization of just RM1.9b, and insiders have RM39m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

With a 24% ownership, the general public have some degree of sway over Panasonic Manufacturing Malaysia 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.

Private Company Ownership

It seems that Private Companies own 3.5%, of the Panasonic Manufacturing Malaysia Berhad stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Public Company Ownership

Public companies currently own 47% of Panasonic Manufacturing Malaysia Berhad stock. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Panasonic Manufacturing Malaysia Berhad has 2 warning signs we think you should be aware of.

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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