Yahoo Finance Boustead Singapore Limited (SGX:F9D) insiders seem bullish, own 46% and have been buying more recently
Key Insights
Insiders appear to have a vested interest in Boustead Singapore's growth, as seen by their sizeable ownership
The top 2 shareholders own 52% of the company
Every investor in Boustead Singapore Limited (SGX:F9D) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 46% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And looking at our data, we can see that insiders have bought shares recently. This could be interpreted as insiders anticipating a rise in stock prices in the near future.
In the chart below, we zoom in on the different ownership groups of Boustead Singapore.
View our latest analysis for Boustead Singapore
What Does The Institutional Ownership Tell Us About Boustead Singapore?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a fair amount of stake in Boustead Singapore. 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 Boustead Singapore's historic earnings and revenue below, but keep in mind there's always more to the story.
Boustead Singapore is not owned by hedge funds. With a 43% stake, CEO Fong Fui Wong is the largest shareholder. In comparison, the second and third largest shareholders hold about 8.3% and 3.0% of the stock.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 52% stake.
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. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Boustead Singapore
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
It seems insiders own a significant proportion of Boustead Singapore Limited. Insiders own S$207m worth of shares in the S$454m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
With a 40% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Boustead Singapore. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Boustead Singapore better, we need to consider many other factors. For example, we've discovered 1 warning sign for Boustead Singapore that you should be aware of before investing here.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.
