Genting Malaysia Berhad (KLSE:GENM) stock most popular amongst public companies who own 49%, while individual investors hold 40%

Key Insights

• The considerable ownership by public companies in Genting Malaysia Berhad indicates that they collectively have a greater say in management and business strategy
• The top 2 shareholders own 51% of the company
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

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If you want to know who really controls Genting Malaysia Berhad (KLSE:GENM), 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 49% to be precise, is public companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, individual investors make up 40% of the company’s shareholders.

In the chart below, we zoom in on the different ownership groups of Genting Malaysia Berhad.

See our latest analysis for Genting Malaysia Berhad

What Does The Institutional Ownership Tell Us About Genting Malaysia 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.

Genting Malaysia 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. 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 Genting Malaysia Berhad, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Genting Malaysia Berhad. Genting Berhad is currently the largest shareholder, with 49% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder owning 1.8% of common stock, and AIA Investment Management Private Limited holds about 1.3% of the company stock.

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.

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 Genting Malaysia 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.

We can report that insiders do own shares in Genting Malaysia Berhad. The insiders have a meaningful stake worth RM131m. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 40% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

We can see that public companies hold 49% of the Genting Malaysia Berhad shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Genting Malaysia Berhad better, we need to consider many other factors. For instance, we've identified 3 warning signs for Genting Malaysia Berhad (1 is concerning) that you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.