49% of Genting Malaysia Berhad (KLSE:GENM) shares are owned by public companies and 36% by private investors.

Key findings

• The significant control of public companies over Genting Malaysia Berhad means that the public has more influence on management and governance-related decisions
• A total of 2 investors own the majority of the company with 51%
• 13% of Genting Malaysia Berhad is held by institutions

Any investor in Genting Malaysia Berhad (KLSE:GENM) should be aware of the most powerful shareholder groups. We can see that listed companies own the lion’s share of the company at 49%. In other words, the group has the greatest upside potential (or downside risk).

On the other hand, private investors make up 36% of the company’s shareholders.

In the table below we zoom in on the different ownership groups of Genting Malaysia Berhad.

Check out our latest analysis for Genting Malaysia Berhad

What does institutional ownership tell us about Genting Malaysia Berhad?

Many institutions measure their performance against an index that is similar to the local market, so they tend to pay more attention to companies listed in major indices.

As you can see, institutional investors own a sizeable share of Genting Malaysia Berhad. This may indicate that the company enjoys a certain level of trust in the investment community. However, one should be wary of relying on the supposed validation that institutional investors bring. They too are sometimes wrong. If multiple institutions change their minds on a stock at the same time, the share price can fall quickly. It is therefore worth taking a look at Genting Malaysia Berhad’s earnings history below. Of course, the future is what really matters.

Hedge funds do not own a lot of shares in Genting Malaysia Berhad. Genting Berhad is currently the company’s largest shareholder with 49% of the outstanding shares. The second and third largest shareholders hold 2.0% and 1.7% of the outstanding shares, respectively.

To make our study even more interesting, we found that the two largest shareholders own the majority stake in the company, which means they are powerful enough to influence the company’s decisions.

Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be done by studying analyst opinions. Quite a few analysts cover the stock, so you can look at the forecasted growth quite easily.

Insider ownership of Genting Malaysia Berhad

The definition of corporate insiders can be subjective and varies by jurisdiction. Our data reflects individual insiders and captures at least board members. Management is ultimately accountable to the board. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.

Most people consider insider ownership to be a positive because it can indicate that the board is well aligned with other shareholders. However, sometimes too much power is concentrated in this group.

According to our information, Genting Malaysia Berhad insiders own less than 1% of the company. It’s a large company, so even a small stake can cause alignment between the board and shareholders. In this case, insiders own RM59 million worth of shares. It’s good to see board members own shares, but it might be worth checking to see if any insiders have been buying.

Public property

The general public – including retail investors – owns 36% of the company’s shares and therefore cannot be easily ignored. While this level of ownership is significant, it may not be enough to change company policy if the decision does not coincide with that of other major shareholders.

Ownership of public companies

Public companies currently own 49% of Genting Malaysia Berhad shares. This is difficult to say for sure, but it suggests that their business interests are intertwined. This could be a strategic stake, so it is worth monitoring this area for any changes in ownership.

Next Steps:

It is always worth thinking about the different groups that own shares in a company. But to better understand Genting Malaysia Berhad, we need to consider many other factors. For example, we found 3 warning signs for Genting Malaysia Berhad that you should know before investing here.

If you prefer to know what analysts are predicting regarding future growth, don’t miss this free Report on analyst forecasts.

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.

Do you have feedback on this article? Are you concerned about the content? Contact us directly from us. Alternatively, send an email to editorial-team (at) simplywallst.com.

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.