Sembcorp Industries Ltd. (a look at its shareholders)SGX:U96() can help us determine which group is the most powerful. Private equity firms are the group with the largest shareholdings in the company (around 50%). This means that the group can either gain or lose the most from their investment in the company.
As a result, private equity firms were the biggest beneficiaries of last week’s 3.1% gain.
Let’s have a closer look at what different types of shareholders can reveal about Sembcorp Industries.
What does the Institutional Ownership tell us about Sembcorp Industries
Institutions often compare themselves to a benchmark when reporting back to their investors. As a result, they tend become more excited about stocks once they’re included in major indexes. If companies are growing, we would expect them to have at least some institutions on this register.
Sembcorp Industries is owned by a number of institutional investors. This could indicate that the company is trustworthy in the investment community. Be wary of relying upon institutional investors for validation. Sometimes they also make mistakes. If two large institutional investors attempt to sell out of the stock simultaneously, it is not unusual for shares to drop dramatically. It is worth looking at the earnings history of Sembcorp Industries (below). Keep in mind, however, that there are many other factors you should consider.
Hedge funds are not owners of Sembcorp Industries. Temasek Holdings Private Limited (Private) Limited is the company’s largest shareholder, owning 50%. This means they have a lot of influence over the future direction of the company. The stock is held by the second and third largest shareholders, respectively 1.7% and 1.1%.
It is possible to filter and gauge the stock’s potential performance by researching institutional ownership. Analysing analyst sentiments can help you do the same. There are many analysts who cover the stock so it is possible to look into forecast growth.
Insider Ownership Of Sembcorp Industries
Definitions of company insiders are subjective and can differ from jurisdiction to jurisdiction. Our data captures board members and individual insiders. The board is ultimately accountable to management. It is common for managers to serve on the executive board, especially if they have a founder or CEO.
Insider ownership is generally something I consider a positive thing. Sometimes, it can make it harder for other shareholders hold the board accountable for their decisions.
According to our information, Sembcorp Industries Ltd insiders hold less than 1% of the company. It is a huge company and even a small share can cause alignment between shareholders as well as the board. In this instance, insiders hold shares worth S$36m. While it is good to have at least some insider ownership, it may be worthwhile checking. if those insiders have been selling.
General Public Ownership
A 39% share of the company’s ownership means that the general public, mainly individual investors, has some influence over Sembcorp Industries. This group may not be able to make decisions for the company, but it can influence how they are run.
Private equity ownership
Private equity firms may have a 50% stake in the Sembcorp Industries board. This could encourage some investors, as private equity can sometimes support strategies that help the market recognize the company’s value. Or, they might decide to exit the investment once it is public.
It is always worthwhile to think about who holds shares in a company. We must consider other factors in order to better understand Sembcorp Industries. Take risks as an example. We’ve seen them in every company. 2 warning signs for Sembcorp Industries You should be aware of these things.
But ultimately It is the futureIt is the future, not the past that will decide how successful this business will be. It is therefore a good idea to look at this free report showing whether analysts are predicting a brighter future.
NB. The figures in this article are based on data from the past twelve months. These refer to the 12-month period ending with the date of the financial statements. This might not be consistent to full-year figures in the annual report.
Let us know what you think about this article. Have a question about the content? Get in touch Get in touch with us. Alternatively, email editorial-team (at) simplywallst.com.
This article is general in nature by Simply Wall St. Our commentary is based on historical data, analyst forecasts and other unbiased information. We do not intend to provide financial advice. This does not constitute a recommendation for you to buy or sell any stock. It also does not take into account your objectives or financial situation. We strive to deliver long-term, specific analysis that is based on fundamental data. Please note that our analysis might not include the most recent announcements from price-sensitive companies or qualitative material. Simply Wall St does not hold any position in the stocks mentioned.
Register for a paid user research session
You’ll receive a Amazon Gift Card: US$30 Give us 1 hour of your time and help us create better investing tools for individual investors like you. Sign up here