Recent uptick might appease Dayang Enterprise Holdings Bhd (KLSE:DAYANG) institutional owners after losing 25% over the past year

Key Insights

• Given the large stake in the stock by institutions, Dayang Enterprise Holdings Bhd's stock price might be vulnerable to their trading decisions
• A total of 7 investors have a majority stake in the company with 53% ownership
• Insider ownership in Dayang Enterprise Holdings Bhd is 16%

We've discovered 2 warning signs about Dayang Enterprise Holdings Bhd. View them for free.

Every investor in Dayang Enterprise Holdings Bhd (KLSE:DAYANG) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 33% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Institutional investors would probably welcome last week's 10% increase in the share price after a year of 25% losses as a sign that returns may to begin trending higher.

Let's take a closer look to see what the different types of shareholders can tell us about Dayang Enterprise Holdings Bhd.

Check out our latest analysis for Dayang Enterprise Holdings Bhd

What Does The Institutional Ownership Tell Us About Dayang Enterprise Holdings Bhd?

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.

We can see that Dayang Enterprise Holdings Bhd does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Dayang Enterprise Holdings Bhd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Dayang Enterprise Holdings Bhd. Naim Holdings Berhad is currently the largest shareholder, with 24% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.1% and 6.3% of the stock. Suk Ling, who is the second-largest shareholder, also happens to hold the title of Senior Key Executive. Furthermore, CEO Yusof Bin Ahmad Shahruddin is the owner of 3.1% of the company's shares.

We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Dayang Enterprise Holdings Bhd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 information suggests that insiders maintain a significant holding in Dayang Enterprise Holdings Bhd. Insiders own RM345m worth of shares in the RM2.2b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Dayang Enterprise Holdings Bhd. 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

We can see that public companies hold 24% of the Dayang Enterprise Holdings Bhd 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 Dayang Enterprise Holdings Bhd better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Dayang Enterprise Holdings Bhd 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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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.