key insights
- Significant control over Mr DIY Group (M) Berhad by private companies means the general public has more power to influence management and governance-related decisions
- The company's largest shareholder is Bee Family Limited, with an ownership of 51%.
- Insider ownership in Mr DIY Group (M) Berhad is 15%.
Every investor in Mr. DIY Group (M) Berhad (KLSE:MRDIY) should be aware of the most powerful shareholder groups. The group with the largest stake in the company (about 51%, to be exact) is privately held. That is, if the stock price rises, the group will gain the most (or if the stock price falls, it will suffer the maximum loss).
Meanwhile, institutional investors account for 18% of the company's shareholders. Typically, as a company grows, institutions' ownership increases. Conversely, insiders often decrease their ownership over time.
The chart below zooms in on the different ownership groups for Mr DIY Group (M) Berhad.
Check out our latest analysis for Mr DIY Group (M) Berhad.
What does ownership of the facility tell us about DIY Group (M) Mr. Berhad?
Many institutions measure performance based on indicators that approximate local markets. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in Mr. DIY Group (M) Berhad. This implies the analysts working for these institutions have considered the stock and they like it. But just like anyone else, they can be wrong. If multiple financial institutions change their view on a stock at the same time, you could see the stock price drop fast. It is therefore worth checking Mr DIY Group (M) Berhad's earnings history, below. Of course, what really matters is the future.
Mr DIY Group (M) Berhad is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Bee Family Limited with 51% of shares outstanding. This essentially means that they have extensive influence, if not complete control, over the future of the company. For context, the second largest shareholder holds about 5.8% of the shares outstanding, followed by an ownership of 3.9% by the third largest shareholder. Additionally, the company's CEO Chu Ong directly holds 0.6% of the total outstanding shares.
While researching institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. . There are plenty of analysts covering the stock, so it might be worth seeing what they are predicting.
Insider ownership in Mr DIY Group (M) Berhad
The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. A company's management runs the business, but the CEO answers to the board, even if he or she is a member of the board.
I generally consider insider ownership to be a good thing. However, in some cases, it may be more difficult for other shareholders to be held accountable for board decisions.
It appears that insiders own a significant portion of Mister DIY Group (M) Berhad. Insiders own RM2.1b worth of shares in the RM14b company. That means a lot. Most people would be happy to see the board investing alongside them. You may want to access this free chart of recent insider transactions.
Open to the public
The general public (mainly individual investors), who hold 14% of the shares, have some influence over DIY Group (M) Berhad. Although this size of ownership is significant, it may not be enough to change company policy if the decision is not aligned with other large shareholders.
Private company ownership
Our data shows that Private companies own 51%, of the company's shares. It's hard to draw any conclusions from this fact alone, so it's worth finding out who owns these private companies. Insiders and other parties may have an interest in the stock of a public company through another private company.
Next steps:
It's always worth thinking about the different groups who own shares in a company. However, to understand DIY Group (M) Berhad better, we need to consider many other factors. For example, we identified 1 warning sign for Mr DIY Group (M) Berhad What you need to know.
If you're like me, you might want to consider whether this company will grow or shrink. Luckily you can check this free report showing analyst forecasts for its future.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
Valuation is complex, but we help make it simple.
Please check it out Mr. DIY Group (M) Berhad Could be overvalued or undervalued, check out our comprehensive analysis. Fair value estimates, risks and caveats, dividends, insider trading, and financial health.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.