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Given the large stake in the stock by institutions, Sapura Energy Berhad’s stock price might be vulnerable to their trading decisions
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53% of the business is held by the top 2 shareholders
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Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
If you want to know who really controls Sapura Energy Berhad (KLSE:SAPNRG), then you’ll have to look at the makeup of its share registry. We can see that institutions own the lion’s share in the company with 42% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And institutional investors saw their holdings value drop by 14% last week. This set of investors may especially be concerned about the current loss, which adds to a one-year loss of 33% for shareholders. Also referred to as “smart money”, institutions have a lot of sway over how a stock’s price moves. Hence, if weakness in Sapura Energy Berhad’s share price continues, institutional investors may feel compelled to sell the stock, which might not be ideal for individual investors.
Let’s take a closer look to see what the different types of shareholders can tell us about Sapura Energy Berhad.
See our latest analysis for Sapura Energy Berhad
KLSE:SAPNRG Ownership Breakdown January 27th 2025
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.
As you can see, institutional investors have a fair amount of stake in Sapura Energy Berhad. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at Sapura Energy Berhad’s earnings history below. Of course, the future is what really matters.
KLSE:SAPNRG Earnings and Revenue Growth January 27th 2025
Sapura Energy Berhad is not owned by hedge funds. The company’s largest shareholder is Permodalan Nasional Berhad, with ownership of 41%. In comparison, the second and third largest shareholders hold about 11% and 2.6% of the stock.
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.
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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Story Continues
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. 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 Sapura Energy Berhad. It has a market capitalization of just RM551m, and insiders have RM36m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board, though we generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.
The general public– including retail investors — own 38% stake in the company, and hence can’t easily be ignored. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.
It seems that Private Companies own 14%, of the Sapura Energy Berhad stock. 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.
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. Take risks for example – Sapura Energy Berhad has 2 warning signs we think you should be aware of.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
