Public companies in Genting Malaysia Berhad (KLSE:GENM) are its biggest bettors, and their bets paid off as stock gained 3.0% last week

Key Insights

• Significant control over Genting Malaysia Berhad by public companies implies that the general public has more power to influence management and governance-related decisions
• A total of 2 investors have a majority stake in the company with 51% ownership
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

We've discovered 3 warning signs about Genting Malaysia Berhad. View them for free.

To get a sense of who is truly in control of Genting Malaysia Berhad (KLSE:GENM), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 49% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, public companies benefitted the most after the company's market cap rose by RM283m last week.

Let's delve deeper into each type of owner of Genting Malaysia Berhad, beginning with the chart below.

View our latest analysis for Genting Malaysia Berhad

What Does The Institutional Ownership Tell Us About Genting 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.

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.

Genting Malaysia Berhad is not owned by hedge funds. The company's largest shareholder is Genting Berhad, with ownership of 49%. With 1.8% and 1.3% of the shares outstanding respectively, The Vanguard Group, Inc. and AIA Investment Management Private Limited are the second and third largest shareholders.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Genting Malaysia 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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 Genting Malaysia Berhad. This is a big company, so it is good to see this level of alignment. Insiders own RM115m worth of shares (at current prices). 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, who are usually individual investors, hold a 40% stake in Genting 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.

Public Company Ownership

Public companies currently own 49% of Genting Malaysia Berhad stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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 example, we've discovered 3 warning signs for Genting Malaysia Berhad (1 doesn't sit too well with us!) that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.