Key Insights
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Significant control over Dutch Lady Milk Industries Berhad by private companies implies that the general public has more power to influence management and governance-related decisions
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Zuivelcoöperatie Frieslandcampina U.A. owns 51% of the company
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19% of Dutch Lady Milk Industries Berhad is held by Institutions
Every investor in Dutch Lady Milk Industries Berhad ( KLSE:DLADY ) should be aware of the most powerful shareholder groups. We can see that private companies own the lion's share in the company with 53% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, individual investors make up 21% of the company's shareholders.
Let's delve deeper into each type of owner of Dutch Lady Milk Industries Berhad, beginning with the chart below.
Check out our latest analysis for Dutch Lady Milk Industries Berhad
What Does The Institutional Ownership Tell Us About Dutch Lady Milk Industries Berhad?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Dutch Lady Milk Industries Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Dutch Lady Milk Industries Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
Dutch Lady Milk Industries Berhad is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Zuivelcoöperatie Frieslandcampina U.A. with 51% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Permodalan Nasional Berhad is the second largest shareholder owning 8.1% of common stock, and Amanah Raya Investment Management Sdn Bhd holds about 4.0% of the company stock.
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 is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Dutch Lady Milk Industries 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Shareholders would probably be interested to learn that insiders own shares in Dutch Lady Milk Industries Berhad. As individuals, the insiders collectively own RM133m worth of the RM2.0b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 21% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Dutch Lady Milk Industries Berhad. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Company Ownership
We can see that Private Companies own 53%, 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 Dutch Lady Milk Industries Berhad better, we need to consider many other factors.
I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph .
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts .
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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.
