Private companies among RCE Capital Berhad's (KLSE:RCECAP) largest stockholders and were hit after last week's 9.5% price drop

Key Insights

• The considerable ownership by private companies in RCE Capital Berhad indicates that they collectively have a greater say in management and business strategy
• 59% of the company is held by a single shareholder (Clear Goal Sdn Bhd)
• 12% of RCE Capital Berhad is held by Institutions

If you want to know who really controls RCE Capital Berhad (KLSE:RCECAP), then you'll have to look at the makeup of its share registry. With 59% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, private companies endured the biggest losses as the stock fell by 9.5%.

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

See our latest analysis for RCE Capital Berhad

What Does The Institutional Ownership Tell Us About RCE Capital Berhad?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in RCE Capital Berhad. 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 RCE Capital Berhad's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in RCE Capital Berhad. Our data shows that Clear Goal Sdn Bhd is the largest shareholder with 59% of shares outstanding. This implies that they have majority interest control of the future of the company. With 3.6% and 2.6% of the shares outstanding respectively, Public Mutual Bhd. and Lembaga Tabung Haji, Endowment Arm are the second and third largest shareholders. In addition, we found that Kam Loh, the CEO has 0.7% of the shares allocated to their name.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of RCE Capital Berhad

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We can report that insiders do own shares in RCE Capital Berhad. As individuals, the insiders collectively own RM129m worth of the RM2.2b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in RCE Capital Berhad. 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.

Private Company Ownership

We can see that Private Companies own 59%, of the shares on issue. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 2 warning signs for RCE Capital Berhad (1 can't be ignored) 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.