Positive week for Syarikat Takaful Malaysia Keluarga Berhad (KLSE:TAKAFUL) institutional investors who lost 6.2% over the past year

Key Insights

• Institutions' substantial holdings in Syarikat Takaful Malaysia Keluarga Berhad implies that they have significant influence over the company's share price
• The top 3 shareholders own 58% of the company
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

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Every investor in Syarikat Takaful Malaysia Keluarga Berhad (KLSE:TAKAFUL) should be aware of the most powerful shareholder groups. With 79% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Last week's RM270m market cap gain would probably be appreciated by institutional investors, especially after a year of 6.2% losses.

Let's take a closer look to see what the different types of shareholders can tell us about Syarikat Takaful Malaysia Keluarga Berhad.

See our latest analysis for Syarikat Takaful Malaysia Keluarga Berhad

What Does The Institutional Ownership Tell Us About Syarikat Takaful Malaysia Keluarga 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.

As you can see, institutional investors have a fair amount of stake in Syarikat Takaful Malaysia Keluarga Berhad. 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. 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 Syarikat Takaful Malaysia Keluarga Berhad's earnings history below. Of course, the future is what really matters.

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Syarikat Takaful Malaysia Keluarga Berhad is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Lembaga Tabung Haji with 31% of shares outstanding. Employees Provident Fund of Malaysia is the second largest shareholder owning 19% of common stock, and Permodalan Nasional Berhad holds about 8.5% of the company stock.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 58% stake.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Syarikat Takaful Malaysia Keluarga Berhad

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.

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.

We can see that insiders own shares in Syarikat Takaful Malaysia Keluarga Berhad. It has a market capitalization of just RM3.0b, and insiders have RM39m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

With a 18% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Syarikat Takaful Malaysia Keluarga Berhad. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. To that end, you should be aware of the 1 warning sign we've spotted with Syarikat Takaful Malaysia Keluarga 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.