Private companies in OSK Holdings Berhad (KLSE:OSK) are its biggest bettors, and their bets paid off as stock gained 5.3% last week

Key Insights

• The considerable ownership by private companies in OSK Holdings Berhad indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Yellow Rock (L) Foundation with a 50% stake
• Insiders own 14% of OSK Holdings Berhad

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To get a sense of who is truly in control of OSK Holdings Berhad (KLSE:OSK), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are private companies with 51% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, private companies benefitted the most after the company's market cap rose by RM217m last week.

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

See our latest analysis for OSK Holdings Berhad

What Does The Institutional Ownership Tell Us About OSK Holdings 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.

OSK Holdings 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 OSK Holdings Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.

OSK Holdings Berhad is not owned by hedge funds. The company's largest shareholder is Yellow Rock (L) Foundation, with ownership of 50%. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 3.2% of the shares outstanding, followed by an ownership of 2.0% by the third-largest shareholder. 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 a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of OSK Holdings Berhad

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

It seems insiders own a significant proportion of OSK Holdings Berhad. It is very interesting to see that insiders have a meaningful RM623m stake in this RM4.3b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public-- including retail investors -- own 29% 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

Our data indicates that Private Companies hold 51%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the 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. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for OSK Holdings Berhad (of which 1 shouldn't be ignored!) you should know about.

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.