sovereign wealth funds who own 55% along with institutions invested in SD Guthrie Berhad (KLSE:SDG) saw increase in their holdings value last week

Key Insights

• Significant control over SD Guthrie Berhad by sovereign wealth funds implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is Permodalan Nasional Berhad with a 55% stake
• 35% of SD Guthrie Berhad is held by Institutions

If you want to know who really controls SD Guthrie Berhad (KLSE:SDG), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are sovereign wealth funds with 55% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Sovereign wealth funds gained the most after market cap touched RM32b last week, while institutions who own 35% also benefitted.

Let's take a closer look to see what the different types of shareholders can tell us about SD Guthrie Berhad.

See our latest analysis for SD Guthrie Berhad

What Does The Institutional Ownership Tell Us About SD Guthrie 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.

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

SD Guthrie Berhad is not owned by hedge funds. Permodalan Nasional Berhad is currently the company's largest shareholder with 55% of shares outstanding. This implies that they have majority interest control of the future of the company. With 16% and 6.7% of the shares outstanding respectively, Employees Provident Fund of Malaysia and Kumpulan Wang Persaraan are the second and third largest shareholders.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of SD Guthrie 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.

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.

Our data cannot confirm that board members are holding shares personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public-- including retail investors -- own 10% 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.

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

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.

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