United Plantations Berhad's (KLSE:UTDPLT) largest shareholders are private companies with 53% ownership, individual investors own 25%

Key Insights

• The considerable ownership by private companies in United Plantations Berhad indicates that they collectively have a greater say in management and business strategy
• The top 2 shareholders own 56% of the company
• Institutions own 17% of United Plantations Berhad

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To get a sense of who is truly in control of United Plantations Berhad (KLSE:UTDPLT), it is important to understand the ownership structure of the business. With 53% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And individual investors on the other hand have a 25% ownership in the company.

In the chart below, we zoom in on the different ownership groups of United Plantations Berhad.

View our latest analysis for United Plantations Berhad

What Does The Institutional Ownership Tell Us About United Plantations Berhad?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that United Plantations Berhad does have institutional investors; and they hold a good portion of the company's stock. 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 United Plantations Berhad's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in United Plantations Berhad. Brothers (Holdings) Pte. Ltd. is currently the company's largest shareholder with 48% of shares outstanding. With 7.4% and 4.2% of the shares outstanding respectively, Employees Provident Fund of Malaysia and Perbadanan Kemajuan Ekonomi Islam Negeri Perak are the second and third largest shareholders. Furthermore, CEO Carl Bek-Nielsen is the owner of 1.3% of the company's shares.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of United Plantations Berhad

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

We can report that insiders do own shares in United Plantations Berhad. This is a big company, so it is good to see this level of alignment. Insiders own RM695m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 25% stake in United Plantations 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

Our data indicates that Private Companies hold 53%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the 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. To that end, you should be aware of the 1 warning sign we've spotted with United Plantations Berhad .

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.