Private companies account for 51% of Mr D.I.Y. Group (M) Berhad's (KLSE:MRDIY) ownership, while institutions account for 18%

Key Insights

• Significant control over Mr D.I.Y. Group (M) Berhad by private companies implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is Bee Family Limited with a 51% stake
• Insider ownership in Mr D.I.Y. Group (M) Berhad is 15%

Every investor in Mr D.I.Y. Group (M) Berhad (KLSE:MRDIY) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 51% to be precise, is private companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, institutions make up 18% of the company’s shareholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.

In the chart below, we zoom in on the different ownership groups of Mr D.I.Y. Group (M) Berhad.

Check out our latest analysis for Mr D.I.Y. Group (M) Berhad

What Does The Institutional Ownership Tell Us About Mr D.I.Y. Group (M) 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.

As you can see, institutional investors have a fair amount of stake in Mr D.I.Y. Group (M) Berhad. 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 Mr D.I.Y. Group (M) Berhad's earnings history below. Of course, the future is what really matters.

Mr D.I.Y. Group (M) Berhad is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Bee Family Limited with 51% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. For context, the second largest shareholder holds about 5.8% of the shares outstanding, followed by an ownership of 3.9% by the third-largest shareholder. Additionally, the company's CEO Chu Ong directly holds 0.6% of the total shares outstanding.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Mr D.I.Y. Group (M) Berhad

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Mr D.I.Y. Group (M) Berhad. Insiders own RM2.1b worth of shares in the RM14b company. That's quite meaningful. 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

With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Mr D.I.Y. Group (M) Berhad. 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

Our data indicates that Private Companies hold 51%, of the company's shares. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Mr D.I.Y. Group (M) Berhad better, we need to consider many other factors. For instance, we've identified 1 warning sign for Mr D.I.Y. Group (M) Berhad that you should be aware of.

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.