OSK Holdings Berhad's (KLSE:OSK) biggest owners are private companies who got richer after stock soared 9.0% last week

Key Insights

• Significant control over OSK Holdings Berhad by private companies implies that the general public has more power to influence management and governance-related decisions
• Yellow Rock (L) Foundation owns 50% of the company
• Insiders own 14% of OSK Holdings Berhad

Every investor in OSK Holdings Berhad (KLSE:OSK) should be aware of the most powerful shareholder groups. With 50% 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).

Clearly, private companies benefitted the most after the company's market cap rose by RM309m last week.

In the chart below, we zoom in on the different ownership groups of OSK Holdings Berhad.

View our latest analysis for OSK Holdings Berhad

What Does The Institutional Ownership Tell Us About OSK Holdings Berhad?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

OSK Holdings Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 OSK Holdings Berhad's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in OSK Holdings Berhad. Yellow Rock (L) Foundation is currently the largest shareholder, with 50% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 3.2% and 2.0% of the shares outstanding respectively, Leong Ong and Ean Hai Toh are the second and third largest shareholders. Leong Ong, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Furthermore, CEO Ju Ong is the owner of 1.3% of the company's shares.

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 OSK Holdings 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.

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.

It seems insiders own a significant proportion of OSK Holdings Berhad. It has a market capitalization of just RM3.8b, and insiders have RM535m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they 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.

Private Company Ownership

It seems that Private Companies own 50%, of the OSK Holdings Berhad stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private 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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for OSK Holdings Berhad you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.