With 70% ownership, Feytech Holdings Berhad (KLSE:FEYTECH) insiders have a lot of say in the company’s future

Key insights

• Insiders appear to have a personal interest in the growth of Feytech Holdings Berhad, as evidenced by their significant ownership stake

• 62% of the company is owned by the 2 largest shareholders

• By combining data from a company’s past performance with ownership research, one can better assess a company’s future performance.

If you want to know who really controls Feytech Holdings Berhad (KLSE:FEYTECH), you’ll have to look at the makeup of the share register. And the group that controls the biggest slice of the pie are individual insiders with 70% ownership. In other words, the group stands to gain (or lose) the most from their investment in the company.

So the stakes are high for Feytech Holdings Berhad insiders and every decision they make about the future of the company is important to them from a financial perspective.

Let’s take a closer look at each type of owner of Feytech Holdings Berhad, starting with the chart below.

View our latest analysis for Feytech Holdings Berhad

What does institutional ownership tell us about Feytech Holdings Berhad?

Many institutions measure their performance against an index that approximates the local market. As a result, they tend to pay more attention to companies that are included in major indices.

Since institutions only own a small portion of Feytech Holdings Berhad, many may not have spent much time considering the stock. But clearly some have; and they liked it enough to buy. If things get stronger from here, we could see a situation where more institutions are keen to buy. Sometimes we see a rising share price when a few large institutions want to buy a particular stock at the same time. The history of earnings and revenue, which you can see below, can be useful in considering whether more institutional investors want the stock. Of course, there are plenty of other factors to consider as well.

Hedge funds do not own much in Feytech Holdings Berhad. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In the case of Feytech Holdings Berhad, the Senior Key Executive, Sun Tan, is the largest shareholder, with 35% of the outstanding shares. In comparison, the second and third largest shareholders own about 27% and 8.3% of the shares. Interestingly, the second and third largest shareholders are also the Senior Key Executive and the member of the board of directors respectively. This again points to significant insider ownership among the company’s top shareholders.

The story continues

A closer look at the shareholder register revealed that two of the largest shareholders hold a significant portion of the company’s ownership, namely 62% of the shares.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understanding of a stock’s expected performance. While there may be some analyst coverage, the company likely isn’t widely covered, so it could receive more attention in the future.

Insider ownership of Feytech Holdings Berhad

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. A company’s management runs the business, but the CEO will answer to the board, even if he or she is a member of it.

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

Our information suggests that insiders own more than half of Feytech Holdings Berhad. This gives them effective control over the company. That means they own RM524m worth of shares in the RM746m company. That’s quite significant. Most would be happy to see the board of directors investing alongside them. You may want to explore (free) whether they bought or sold.

General public property

The general public, which is typically made up of individual investors, holds a 27% stake in Feytech Holdings Berhad. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on the company’s policies.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand Feytech Holdings Berhad, we need to consider many other factors.

I like to dive deeper to how a company has performed in the past. You can access it here interactive graph of previous income, revenue and cash flow, for free.

If you’d rather know what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.

NB: The figures in this article have been calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month in which the financial statement is dated. This may not correspond to the figures in the full annual report.

Do you have feedback on this article? Are you concerned about the content? Contact Us directly with us. You can also email editorial-team (at) simplywallst.com.

This article from Simply Wall St is general in nature. We comment solely on historical data and analyst forecasts, using an objective methodology. Our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or financial situation. We aim to provide you with a long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in the shares mentioned.