Are Institutions Heavily Invested In CapitaLand Malaysia Mall Trust's (KLSE:CMMT) Shares?

Every investor in CapitaLand Malaysia Mall Trust (KLSE:CMMT) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.

CapitaLand Malaysia Mall Trust is a smaller company with a market capitalization of RM1.3b, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about CapitaLand Malaysia Mall Trust.

See our latest analysis for CapitaLand Malaysia Mall Trust

What Does The Institutional Ownership Tell Us About CapitaLand Malaysia Mall Trust?

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.

We can see that CapitaLand Malaysia Mall Trust 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. 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 CapitaLand Malaysia Mall Trust's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in CapitaLand Malaysia Mall Trust. Our data shows that Temasek Holdings (Private) Limited is the largest shareholder with 37% of shares outstanding. For context, the second largest shareholder holds about 19% of the shares outstanding, followed by an ownership of 13% by the third-largest shareholder.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 CapitaLand Malaysia Mall Trust

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.

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.

Our information suggests that CapitaLand Malaysia Mall Trust insiders own under 1% of the company. It has a market capitalization of just RM1.3b, and the board has only RM6.3m worth of shares in their own names. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

With a 12% ownership, the general public have some degree of sway over CapitaLand Malaysia Mall Trust. 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 Equity Ownership

With a stake of 37%, private equity firms could influence the CapitaLand Malaysia Mall Trust board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand CapitaLand Malaysia Mall Trust better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with CapitaLand Malaysia Mall Trust (including 1 which makes us a bit uncomfortable) .

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. 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.
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