Are Institutions Heavily Invested In Frasers Logistics & Commercial Trust's (SGX:BUOU) Shares?

The big shareholder groups in Frasers Logistics & Commercial Trust (SGX:BUOU) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.

Frasers Logistics & Commercial Trust has a market capitalization of S$4.7b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Frasers Logistics & Commercial Trust.

View our latest analysis for Frasers Logistics & Commercial Trust

What Does The Institutional Ownership Tell Us About Frasers Logistics & Commercial 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.

As you can see, institutional investors have a fair amount of stake in Frasers Logistics & Commercial Trust. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Frasers Logistics & Commercial Trust's historic earnings and revenue below, but keep in mind there's always more to the story.

Frasers Logistics & Commercial Trust is not owned by hedge funds. Our data shows that TCC Assets Limited is the largest shareholder with 21% of shares outstanding. With 4.2% and 3.5% of the shares outstanding respectively, Rojana Industrial Park Public Company Limited and Panote Sirivadhanabhakdi are the second and third largest shareholders. Panote Sirivadhanabhakdi, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Frasers Logistics & Commercial Trust

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 most recent data indicates that insiders own some shares in Frasers Logistics & Commercial Trust. The insiders have a meaningful stake worth S$167m. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are mostly retail investors, collectively hold 50% of Frasers Logistics & Commercial Trust shares. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

We can see that Private Companies own 22%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

Public companies currently own 4.5% of Frasers Logistics & Commercial Trust stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Frasers Logistics & Commercial Trust better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Frasers Logistics & Commercial Trust you should be aware of, and 2 of them are potentially serious.

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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