CCK Consolidated Holdings Berhad's (KLSE:CCK) market cap rose RM87m last week; private companies who hold 44% profited and so did insiders

Key Insights

• Significant control over CCK Consolidated Holdings Berhad by private companies implies that the general public has more power to influence management and governance-related decisions
• The top 3 shareholders own 54% of the company
• Insider ownership in CCK Consolidated Holdings Berhad is 25%

A look at the shareholders of CCK Consolidated Holdings Berhad (KLSE:CCK) can tell us which group is most powerful. With 44% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

While private companies were the group that reaped the most benefits after last week’s 13% price gain, insiders also received a 25% cut.

In the chart below, we zoom in on the different ownership groups of CCK Consolidated Holdings Berhad.

Check out our latest analysis for CCK Consolidated Holdings Berhad

What Does The Institutional Ownership Tell Us About CCK Consolidated Holdings 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 CCK Consolidated Holdings Berhad. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see CCK Consolidated Holdings Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in CCK Consolidated Holdings Berhad. S. K. Tiong Enterprise Sdn. Bhd. is currently the largest shareholder, with 39% of shares outstanding. With 9.4% and 5.4% of the shares outstanding respectively, Liong Lau and Su Tiong are the second and third largest shareholders. Note that the second and third-largest shareholders are also Head of Marketing and Chairman of the Board, respectively, meaning that the company's top shareholders are insiders. In addition, we found that Chiong Tiong, the CEO has 0.7% of the shares allocated to their name.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of CCK Consolidated Holdings 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. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of CCK Consolidated Holdings Berhad. Insiders own RM194m worth of shares in the RM764m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in CCK Consolidated Holdings 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

We can see that Private Companies own 44%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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 - CCK Consolidated Holdings Berhad has 1 warning sign we think you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.