Bumi Armada Berhad's (KLSE:ARMADA) largest shareholders are private companies with 42% ownership, individual investors own 26%
Key Insights
The considerable ownership by private companies in Bumi Armada Berhad indicates that they collectively have a greater say in management and business strategy
The top 3 shareholders own 53% of the company
If you want to know who really controls Bumi Armada Berhad (KLSE:ARMADA), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 42% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).
Individual investors, on the other hand, account for 26% of the company's stockholders.
Let's take a closer look to see what the different types of shareholders can tell us about Bumi Armada Berhad.
Check out our latest analysis for Bumi Armada Berhad
What Does The Institutional Ownership Tell Us About Bumi Armada Berhad?
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.
We can see that Bumi Armada Berhad does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Bumi Armada Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
Bumi Armada Berhad is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Objeklif Bersatu Sdn Bhd with 35% of shares outstanding. Permodalan Nasional Berhad is the second largest shareholder owning 13% of common stock, and Norges Bank Investment Management holds about 6.1% of the company stock. Furthermore, CEO Gary Christenson is the owner of 0.6% of the company's shares.
To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Bumi Armada 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.
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.
We can report that insiders do own shares in Bumi Armada Berhad. As individuals, the insiders collectively own RM53m worth of the RM3.4b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public, who are usually individual investors, hold a 26% stake in Bumi Armada Berhad. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
We can see that Private Companies own 42%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Bumi Armada Berhad better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Bumi Armada Berhad , and understanding them should be part of your investment process.
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.
