With 68% ownership, Supercomnet Technologies Berhad (KLSE:SCOMNET) insiders have a lot riding on the company's future

Key Insights

• Supercomnet Technologies Berhad's significant insider ownership suggests inherent interests in company's expansion

• A total of 4 investors have a majority stake in the company with 56% ownership

• Institutions own 10% of Supercomnet Technologies Berhad

To get a sense of who is truly in control of Supercomnet Technologies Berhad (KLSE:SCOMNET), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 68% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

So it follows, every decision made by insiders of Supercomnet Technologies Berhad regarding the company's future would be crucial to them.

Let's take a closer look to see what the different types of shareholders can tell us about Supercomnet Technologies Berhad.

Check out our latest analysis for Supercomnet Technologies Berhad

What Does The Institutional Ownership Tell Us About Supercomnet Technologies Berhad?

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.

Supercomnet Technologies Berhad already has institutions on the share registry. Indeed, they own a respectable stake in 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. 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 Supercomnet Technologies Berhad's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Supercomnet Technologies Berhad. Looking at our data, we can see that the largest shareholder is the CEO Jong-Zone Shiue with 28% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 12% and 10.0%, of the shares outstanding, respectively. Interestingly, the second and third-largest shareholders also happen to be the Senior Key Executive and Member of the Board of Directors, respectively. This once again signifies considerable insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 4 shareholders control more than half of the company's shares which essentially means that there is concentrated ownership amongst the top shareholders, most of whom happen to be insiders!

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Supercomnet Technologies Berhad

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.

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.

It seems that insiders own more than half the Supercomnet Technologies Berhad stock. This gives them a lot of power. Given it has a market cap of RM1.0b, that means they have RM711m worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 21% stake in Supercomnet Technologies Berhad. 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.

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 1 warning sign for Supercomnet Technologies Berhad that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.