Insiders Own 31% Of Valuetronics Holdings Limited (SGX:BN2) Shares But Individual Investors Control 56% Of The Company

The considerable ownership by individual investors in Valuetronics Holdings indicates that they collectively have a greater say in management and business strategy
A total of 16 investors have a majority stake in the company with 44% ownership
31% of Valuetronics Holdings is held by insiders

A look at the shareholders of Valuetronics Holdings Limited (SGX:BN2) can tell us which group is most powerful. The group holding the most number of shares in the company, around 56% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

And individual insiders on the other hand have a 31% ownership in the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

In the chart below, we zoom in on the different ownership groups of Valuetronics Holdings.

View our latest analysis for Valuetronics Holdings

ownership-breakdown — SGX:BN2 Ownership Breakdown January 15th 2025

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Valuetronics Holdings does have institutional investors; and they hold a good portion of the company’s stock. 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 Valuetronics Holdings, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth — SGX:BN2 Earnings and Revenue Growth January 15th 2025

Valuetronics Holdings is not owned by hedge funds. The company’s CEO Chong Hing Tse is the largest shareholder with 19% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.8% and 5.0%, of the shares outstanding, respectively. 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.

A deeper look at our ownership data shows that the top 16 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be achieved by studying analyst sentiments. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

It seems insiders own a significant proportion of Valuetronics Holdings Limited. It has a market capitalization of just S$254m, and insiders have S$78m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

The general public — including retail investors — own 56% of Valuetronics Holdings. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Valuetronics Holdings is showing 2 warning signs in our investment analysis , and 1 of those doesn’t sit too well with us…

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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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