Key findings

• The significant institutional holdings in Public Bank Berhad imply that they have significant influence on the company’s share price.

• 51% of the company is owned by the 6 largest shareholders

• Data from analyst forecasts and owner research can help better estimate a company’s future performance

If you want to know who really controls Public Bank Berhad (KLSE:PBBANK), you need to look at the composition of its share registry. The group that holds the most shares in the company, around 43%, are institutions. In other words, this group has the greatest upside potential (or downside risk).

Last week’s 6.6% gain means institutional investors have been on the positive end of the spectrum, despite the company showing strong long-term trends. The shareholder return is currently 15% for one year, and last week’s gain was the icing on the cake.

Let’s take a closer look at what the different types of shareholders can tell us about Public Bank Berhad.

Check out our latest analysis for Public Bank Berhad

What does institutional ownership tell us about Public Bank Berhad?

Institutional investors often compare their own returns to those of a commonly followed index, so they typically consider buying larger companies included in the relevant benchmark index.

We can see that Public Bank Berhad has institutional investors; and they hold a large portion of the company’s shares. This means that the analysts working for these institutions have looked at the stock and they like it. But, like anyone, they can be wrong. If multiple institutions change their minds on a stock at the same time, the share price can drop quickly. So it’s worth taking a look at Public Bank Berhad’s earnings history below. Of course, the future is what really matters.

Hedge funds do not own a lot of shares in Public Bank Berhad. Our data shows that Consolidated Teh Holdings Sdn Berhad is the largest shareholder with 23% of the outstanding shares. The second and third largest shareholders hold 16% and 4.1% of the outstanding shares, respectively.

Upon closer inspection, we found that more than half of the company’s shares are owned by the top six shareholders, suggesting that the interests of the larger shareholders are balanced to some extent by those of the smaller shareholders.

While studying institutional ownership of a company can enrich your research, it is also a good practice to research analyst recommendations to get a deeper understanding of a stock’s expected performance. There are a considerable number of analysts covering the stock, so it could be useful to find out their overall view on the future.

The story continues

Insider ownership of Public Bank Berhad

While the exact definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management runs the business, but the CEO is responsible to the board, even if he or she is a member of the board.

Insider ownership is positive when it signals that management thinks like the true owners of the company. However, high insider ownership can also give enormous power to a small group within the company. This can be negative in some circumstances.

Our latest data shows that insiders own less than 1% of Public Bank Berhad. However, they could have indirect interests through a corporate structure we haven’t detected. As it’s a large company, we would only expect insiders to own a small percentage of it. However, it’s worth noting that they own RM149 million worth of shares. Recent purchases and sales are arguably just as important to consider. You can click here to see if insiders have been buying or selling.

Public property

The general public, usually retail investors, holds a 32 percent stake in Public Bank Berhad. While this stake is significant, it may not be enough to change the company’s policy if the decision is not in line with that of other major shareholders.

Private company ownership

We can see that private companies own 23% of the shares outstanding. Private companies can be related parties. Sometimes insiders are involved in a public company through an ownership interest in a private company rather than in their own capacity as an individual. While it is difficult to draw any general conclusions, this is an area for further investigation.

Next Steps:

I find it very interesting to investigate who exactly owns a company. But to gain real insights, we also need to consider other information. For example, we found out 1 warning signal for Public Bank Berhad that you should know before investing here.

But ultimately It is the futurenot the past, will determine how well the owners of this company will perform, so we think it wise to take a look at this free report showing whether analysts are predicting a better future.

NB: The figures in this article are calculated using the last twelve months’ data, which refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the annual report.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.