Insiders own 31% of Valuetronics Holdings Limited (SGX:BN2) shares but individual investors control 57% of the company
In This Article:
Key Insights
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Valuetronics Holdings' significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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A total of 17 investors have a majority stake in the company with 43% ownership
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Insiders own 31% of Valuetronics Holdings
To get a sense of who is truly in control of Valuetronics Holdings Limited (SGX:BN2), it is important to understand the ownership structure of the business. With 57% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Individual insiders, on the other hand, account for 31% of the company's stockholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
Let's delve deeper into each type of owner of Valuetronics Holdings, beginning with the chart below.
View our latest analysis for Valuetronics Holdings
What Does The Institutional Ownership Tell Us About Valuetronics Holdings?
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.
Valuetronics Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Valuetronics Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.
We note that hedge funds don't have a meaningful investment in Valuetronics Holdings. With a 19% stake, CEO Chong Hing Tse is the largest shareholder. In comparison, the second and third largest shareholders hold about 7.8% and 5.1% of the stock. Interestingly, the second-largest shareholder, Kok Kit Chow is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.
Our studies suggest that the top 17 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.