Private companies are Eco World Development Group Berhad's (KLSE:ECOWLD) biggest owners and were rewarded after market cap rose by RM237m last week

Key Insights

• Significant control over Eco World Development Group Berhad by private companies implies that the general public has more power to influence management and governance-related decisions
• A total of 3 investors have a majority stake in the company with 50% ownership
• 19% of Eco World Development Group Berhad is held by insiders

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A look at the shareholders of Eco World Development Group Berhad (KLSE:ECOWLD) can tell us which group is most powerful. With 48% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies collectively scored the highest last week as the company hit RM5.9b market cap following a 4.2% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Eco World Development Group Berhad.

Check out our latest analysis for Eco World Development Group Berhad

What Does The Institutional Ownership Tell Us About Eco World Development Group 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.

Eco World Development Group Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Eco World Development Group Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.

Eco World Development Group Berhad is not owned by hedge funds. Syabas Tropikal Sdn Bhd is currently the largest shareholder, with 33% of shares outstanding. With 10% and 7.4% of the shares outstanding respectively, Kee Liew and Eco World Development Holdings Sdn Bhd are the second and third largest shareholders. Kee Liew, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 Eco World Development Group 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of Eco World Development Group Berhad. Insiders own RM1.1b worth of shares in the RM5.9b company. That's quite meaningful. It is good to see this level of investment. 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 19% stake in Eco World Development Group Berhad. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 48%, of the Eco World Development Group 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 Eco World Development Group Berhad better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Eco World Development Group Berhad .

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.