Bank Islam Malaysia Berhad (KLSE:BIMB) is a favorite amongst institutional investors who own 73%
In This Article:
Key Insights
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Institutions' substantial holdings in Bank Islam Malaysia Berhad implies that they have significant influence over the company's share price
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The top 2 shareholders own 64% of the company
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Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
Every investor in Bank Islam Malaysia Berhad (KLSE:BIMB) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 73% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.
Let's take a closer look to see what the different types of shareholders can tell us about Bank Islam Malaysia Berhad.
See our latest analysis for Bank Islam Malaysia Berhad
What Does The Institutional Ownership Tell Us About Bank Islam Malaysia 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.
As you can see, institutional investors have a fair amount of stake in Bank Islam Malaysia Berhad. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Bank Islam Malaysia Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Bank Islam Malaysia Berhad is not owned by hedge funds. The company's largest shareholder is Lembaga Tabung Haji, Endowment Arm, with ownership of 48%. For context, the second largest shareholder holds about 16% of the shares outstanding, followed by an ownership of 13% by the third-largest shareholder.
After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.