After the recent decline, SNS Network Technology Berhad (KLSE:SNS) Head of Marketing Wai Onn Pah's holdings have lost 19% of their value

Key Insights

• Significant insider control over SNS Network Technology Berhad implies vested interests in company growth
• A total of 2 investors have a majority stake in the company with 63% ownership
• Institutional ownership in SNS Network Technology Berhad is 10%

A look at the shareholders of SNS Network Technology Berhad (KLSE:SNS) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 77% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to RM927m last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of SNS Network Technology Berhad, beginning with the chart below.

Check out our latest analysis for SNS Network Technology Berhad

What Does The Institutional Ownership Tell Us About SNS Network Technology 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.

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

SNS Network Technology Berhad is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In SNS Network Technology Berhad's case, its Head of Marketing, Wai Onn Pah, is the largest shareholder, holding 32% of shares outstanding. With 32% and 9.2% of the shares outstanding respectively, Yun Hung Ko and Wei Ming Siow are the second and third largest shareholders. Interestingly, the second and third-largest shareholders also happen to be the Chief Executive Officer and Member of the Board of Directors, respectively. This once again signifies considerable insider ownership amongst the company's top shareholders.

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 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of SNS Network Technology 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.

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.

It seems that insiders own more than half the SNS Network Technology Berhad stock. This gives them a lot of power. That means they own RM715m worth of shares in the RM927m company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 13% stake in SNS Network Technology 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with SNS Network Technology Berhad .

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.