Great week for MNRB Holdings Berhad (KLSE:MNRB) institutional investors after losing 15% over the previous year

Key Insights

• Institutions' substantial holdings in MNRB Holdings Berhad implies that they have significant influence over the company's share price
• Permodalan Nasional Berhad owns 54% of the company
• 14% of MNRB Holdings Berhad is held by insiders

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If you want to know who really controls MNRB Holdings Berhad (KLSE:MNRB), then you'll have to look at the makeup of its share registry. With 54% stake, institutions 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).

Last week's RM164m market cap gain would probably be appreciated by institutional investors, especially after a year of 15% losses.

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

View our latest analysis for MNRB Holdings Berhad

What Does The Institutional Ownership Tell Us About MNRB Holdings 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 MNRB Holdings Berhad 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. 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 MNRB Holdings Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. MNRB Holdings Berhad is not owned by hedge funds. Permodalan Nasional Berhad is currently the company's largest shareholder with 54% of shares outstanding. This implies that they have majority interest control of the future of the company. Goon Khing Kong is the second largest shareholder owning 4.8% of common stock, and Goon Siong Kong holds about 1.7% of the company stock.

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

Insider Ownership Of MNRB 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.

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 MNRB Holdings Berhad. It has a market capitalization of just RM1.5b, and insiders have RM208m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 29% stake in the company, and hence can't easily be ignored. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand MNRB Holdings Berhad better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for MNRB Holdings Berhad you should know about.

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.

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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.