The Hour Glass Limited's (SGX:AGS) 6.0% gain last week benefited both private companies who own 57% as well as insiders

Key Insights

• The considerable ownership by private companies in Hour Glass indicates that they collectively have a greater say in management and business strategy
• TYC Investment Pte. Ltd. owns 52% of the company
• Insider ownership in Hour Glass is 19%

Every investor in The Hour Glass Limited (SGX:AGS) should be aware of the most powerful shareholder groups. We can see that private companies own the lion's share in the company with 57% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 6.0% increase in the stock price last week, private companies profited the most, but insiders who own 19% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Hour Glass, beginning with the chart below.

See our latest analysis for Hour Glass

What Does The Institutional Ownership Tell Us About Hour Glass?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Hour Glass 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. 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 Hour Glass' historic earnings and revenue below, but keep in mind there's always more to the story.

Hour Glass is not owned by hedge funds. TYC Investment Pte. Ltd. is currently the largest shareholder, with 52% of shares outstanding. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 9.9% and 5.6% of the stock. Yun Tay, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Additionally, the company's CEO Wee Jin Tay directly holds 4.1% of the total shares outstanding.

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 Hour Glass

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.

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 most recent data indicates that insiders own a reasonable proportion of The Hour Glass Limited. It has a market capitalization of just S$1.4b, and insiders have S$258m worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hour Glass. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 57%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Hour Glass you should know about.

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.

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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.