Bahvest Resources Berhad's (KLSE:BAHVEST) market cap up RM209m last week, benefiting both individual investors who own 34% as well as insiders

Key Insights

• The considerable ownership by individual investors in Bahvest Resources Berhad indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 8 shareholders
• Insider ownership in Bahvest Resources Berhad is 32%

To get a sense of who is truly in control of Bahvest Resources Berhad (KLSE:BAHVEST), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 34% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Individual investors gained the most after market cap touched RM1.7b last week, while insiders who own 32% also benefitted.

Let's delve deeper into each type of owner of Bahvest Resources Berhad, beginning with the chart below.

Check out our latest analysis for Bahvest Resources Berhad

What Does The Institutional Ownership Tell Us About Bahvest Resources 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 Bahvest Resources 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. 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 Bahvest Resources 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 Bahvest Resources Berhad. Looking at our data, we can see that the largest shareholder is Innosabah Capital Holdings Sdn Bhd with 15% of shares outstanding. Kenanga Investors Bhd. is the second largest shareholder owning 14% of common stock, and Vui Han Lee holds about 8.1% of the company stock.

We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Bahvest Resources 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.

Our information suggests that insiders maintain a significant holding in Bahvest Resources Berhad. Insiders own RM543m worth of shares in the RM1.7b company. 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 34% 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.

Private Company Ownership

It seems that Private Companies own 18%, of the Bahvest Resources Berhad stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Bahvest Resources Berhad better, we need to consider many other factors. Case in point: We've spotted 5 warning signs for Bahvest Resources Berhad you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.