Unisem (M) Berhad (KLSE:UNISEM) stock price fell 6.5% last week; public companies would not be happy

To get an idea of ​​who actually controls Unisem (M) Berhad (KLSE: UNISEM), it is important to understand the ownership structure of the company. With 48% 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).

After a 6.5% drop in stock prices last week, public companies suffered the most losses, but insiders who hold 27% of the shares were also affected.

Let’s dive deeper into each owner type of Unisem (M) Berhad, starting with the table below.

Check out our latest analysis for Unisem (M) Berhad

KLSE: UNISEM OWNERSHIP DISTRIBUTION July 8, 2022

What does institutional ownership tell us about Unisem (M) 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 is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

As you can see, institutional investors hold a sizeable share of Unisem (M) Berhad. This may indicate that the company has some degree of credibility in the investment community. However, it is better to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking the past earnings trajectory of Unisem (M) Berhad, (below). Of course, keep in mind that there are other factors to consider as well.

earnings-and-revenue-growth
KLSE:UNISEM Earnings and Revenue Growth July 8, 2022

Unisem (M) Berhad is not owned by hedge funds. Tianshui Huatian Technology Co.,Ltd. is currently the largest shareholder of the company with 48% of the outstanding shares. For context, the second shareholder owns approximately 25% of the outstanding shares, followed by a 1.8% stake 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 a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.

Insider Ownership of Unisem (M) Berhad

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. 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.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders hold a reasonable proportion of Unisem (M) Berhad. Insiders hold RM926 million worth of shares in the RM3.5 billion company. 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, including retail investors, owns 13% of the company’s capital and therefore cannot be easily ignored. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other large shareholders.

Ownership of a public company

It can be seen that public companies hold 48% 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:

It is always useful to think about the different groups that own shares in a company. But to better understand Unisem (M) Berhad, we need to consider many other factors. For example, we have identified 3 warning signs for Unisem (M) Berhad (1 is concerning) that you should be aware of.

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 in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

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.

Karen J. Nelson