Duopharma Biotech Berhad (KLSE:DPHARMA) stock most popular amongst sovereign wealth funds who own 51%, while individual investors hold 26%
Key Insights
A look at the shareholders of Duopharma Biotech Berhad (KLSE:DPHARMA) can tell us which group is most powerful. With 51% stake, sovereign wealth funds possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
And individual investors on the other hand have a 26% ownership in the company.
In the chart below, we zoom in on the different ownership groups of Duopharma Biotech Berhad.
View our latest analysis for Duopharma Biotech Berhad
What Does The Institutional Ownership Tell Us About Duopharma Biotech Berhad?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a fair amount of stake in Duopharma Biotech Berhad. 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. 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 Duopharma Biotech Berhad’s historic earnings and revenue below, but keep in mind there’s always more to the story.
Hedge funds don’t have many shares in Duopharma Biotech Berhad. Our data shows that Permodalan Nasional Berhad is the largest shareholder 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. For context, the second largest shareholder holds about 11% of the shares outstanding, followed by an ownership of 1.9% by the third-largest shareholder.
While studying 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Duopharma Biotech Berhad
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our data suggests that insiders own under 1% of Duopharma Biotech Berhad in their own names. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It seems the board members have no more than RM3.6m worth of shares in the RM1.3b company. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
General Public Ownership
The general public– including retail investors — own 26% stake in the company, and hence can’t easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Next Steps:
It’s always worth thinking about the different groups who own shares in a company. But to understand Duopharma Biotech Berhad better, we need to consider many other factors. Take risks for example – Duopharma Biotech Berhad has 1 warning sign we think you should be aware of.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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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.
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