Autocount Dotcom Berhad's (KLSE:ADB) CEO Yan Choo is the most upbeat insider, and their holdings increased by 12% last week
Key Insights
- Insiders appear to have a vested interest in Autocount Dotcom Berhad's growth, as seen by their sizeable ownership
- 62% of the business is held by the top 2 shareholders
- Using data from company's past performance alongside ownership research, one can better assess the future performance of a company
If you want to know who really controls Autocount Dotcom Berhad (KLSE:ADB), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 78% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Clearly, insiders benefitted the most after the company's market cap rose by RM63m last week.
Let's take a closer look to see what the different types of shareholders can tell us about Autocount Dotcom Berhad.
Check out our latest analysis for Autocount Dotcom Berhad
What Does The Institutional Ownership Tell Us About Autocount Dotcom 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.
As you can see, institutional investors have a fair amount of stake in Autocount Dotcom Berhad. 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 Autocount Dotcom Berhad's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Autocount Dotcom Berhad. The company's CEO Yan Choo is the largest shareholder with 31% of shares outstanding. Chin Choo is the second largest shareholder owning 31% of common stock, and Boon Ng holds about 4.4% of the company stock. Interestingly, the second-largest shareholder, Chin Choo is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 62% stake.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Autocount Dotcom Berhad
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
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 that insiders own more than half the Autocount Dotcom Berhad stock. This gives them a lot of power. That means they own RM479m worth of shares in the RM611m company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.
General Public Ownership
With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Autocount Dotcom 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.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 2 warning signs for Autocount Dotcom Berhad you should be aware of.
Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.
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.
Valuation is complex, but we're here to simplify it.
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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.