Singapore Technologies Engineering Ltd's (SGX:S63) top owners are private equity firms with 51% stake, while 36% is held by individual investors

Key Insights

• The considerable ownership by private equity firms in Singapore Technologies Engineering indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Temasek Holdings (Private) Limited with a 51% stake
• 13% of Singapore Technologies Engineering is held by Institutions

A look at the shareholders of Singapore Technologies Engineering Ltd (SGX:S63) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private equity firms with 51% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, individual investors make up 36% of the company’s shareholders.

Let's take a closer look to see what the different types of shareholders can tell us about Singapore Technologies Engineering.

View our latest analysis for Singapore Technologies Engineering

What Does The Institutional Ownership Tell Us About Singapore Technologies Engineering?

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 Singapore Technologies Engineering does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Singapore Technologies Engineering, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Singapore Technologies Engineering. Temasek Holdings (Private) Limited is currently the largest shareholder, with 51% of shares outstanding. This implies that they have majority interest control of the future of the company. The Vanguard Group, Inc. is the second largest shareholder owning 1.9% of common stock, and BlackRock, Inc. holds about 1.8% of the company stock.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Singapore Technologies Engineering

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Our information suggests that Singapore Technologies Engineering Ltd insiders own under 1% of the company. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own S$63m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 36% stake in the company, and hence can't easily be ignored. 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

Private equity firms hold a 51% stake in Singapore Technologies Engineering. This suggests they can be influential in key policy decisions. 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:

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. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Singapore Technologies Engineering (of which 1 is concerning!) 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.