Unisem (M) Berhad (KLSE:UNISEM) stock price fell 11% last week; public companies would not be happy

Every investor in Unisem (M) Berhad (KLSE:UNISEM) should know the most powerful shareholder groups. With 46% of the capital, public companies hold the maximum shares in the company. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).

While public company holdings took a hit after prices fell 11% last week, insiders with their 29% also suffered.

In the table below, we zoom in on the different ownership groups of Unisem (M) Berhad.

Check out our latest analysis for Unisem (M) Berhad

distribution of property

What does institutional ownership tell us about Unisem (M) Berhad?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

Unisem (M) Berhad already has institutions listed in the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. It is therefore worth checking out the earnings history of Unisem (M) Berhad below. Of course, the future is what really matters.

earnings-and-revenue-growth

earnings-and-revenue-growth

We note that hedge funds have no significant investment in Unisem (M) Berhad. Tianshui Huatian Technology Co.,Ltd. is currently the largest shareholder, with 46% of the outstanding shares. For context, the second shareholder owns approximately 27% of the outstanding shares, followed by a 1.8% ownership by the third shareholder. Sin Chia, which is the second largest shareholder, also holds the title of managing director.

To make our study more interesting, we found that the top 2 shareholders hold a majority stake in the company, which means they are powerful enough to influence company decisions.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.

Insider Ownership of Unisem (M) Berhad

The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our information suggests that insiders hold a large stake in Unisem (M) Berhad. Insiders have a RM1.2 billion stake in this RM4.0 billion venture. It’s great to see insiders so invested in the company. It might be worth checking to see if these insiders have bought recently.

General public property

The general public, usually individual investors, owns 12% of the capital of Unisem (M) Berhad. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Ownership of a public company

It can be seen that public companies hold 46% of Unisem (M) Berhad shares issued. We cannot be sure, but it is quite possible that it is a strategic issue. Businesses can be similar or work together.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. Know that Unisem (M) Berhad shows 2 warning signs in our investment analysis and 1 of them cannot be ignored…

If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Karen J. Nelson