Do Insiders Own Shares In Frasers Logistics & Industrial Trust (SGX:BUOU)?

If you want to know who really controls Frasers Logistics & Industrial Trust (SGX:BUOU), then you’ll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Warren Buffett said that he likes ‘a business with enduring competitive advantages that is run by able and owner-oriented people’. So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.

Frasers Logistics & Industrial Trust isn’t enormous, but it’s not particularly small either. It has a market capitalization of S$2.8b, which means it would generally expect to see some institutions on the share registry. In the chart below, we can see that institutional investors have bought into the company. Let’s delve deeper into each type of owner, to discover more about Frasers Logistics & Industrial Trust.

View our latest analysis for Frasers Logistics & Industrial Trust

SGX:BUOU Ownership Summary, January 18th 2020
SGX:BUOU Ownership Summary, January 18th 2020

What Does The Institutional Ownership Tell Us About Frasers Logistics & Industrial Trust?

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.

Frasers Logistics & Industrial Trust already has institutions on the share registry. Indeed, they own 23% of the company. 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 Frasers Logistics & Industrial Trust, (below). Of course, keep in mind that there are other factors to consider, too.

SGX:BUOU Income Statement, January 18th 2020
SGX:BUOU Income Statement, January 18th 2020

Hedge funds don’t have many shares in Frasers Logistics & Industrial Trust. TCC Assets Limited is currently the largest shareholder, with 19% of shares outstanding. The second and third largest shareholders are Rojana Industrial Park Public Company Limited and Panote Sirivadhanabhakdi, holding 6.3% and 5.2%, respectively. Panote Sirivadhanabhakdi also happens to hold the title of Member of the Board of Directors.

A closer look at our ownership figures suggests that the top 17 shareholders have a combined ownership of 50% implying that no one share holder has a majority.

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

Insider Ownership Of Frasers Logistics & Industrial Trust

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.

I can report that insiders do own shares in Frasers Logistics & Industrial Trust. The insiders have a meaningful stake worth S$148m. Most would see this as a real positive. It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public holds a 45% stake in BUOU. 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.

Private Company Ownership

It seems that Private Companies own 20%, of the BUOU stock. 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.

Public Company Ownership

We can see that public companies hold 6.8%, of the BUOU shares on issue. 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:

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. For example, we’ve discovered 3 warning signs for Frasers Logistics & Industrial Trust that you should be aware of before investing here.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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