With 71% ownership, Aztech Global Ltd. (SGX:8AZ) insiders have a lot at stake

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3 days ago

Key Insights
Significant insider control over Aztech Global implies vested interests in company growth
Hong Yew Mun owns 70% of the company
Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
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Every investor in Aztech Global Ltd. (SGX:8AZ) should be aware of the most powerful shareholder groups. With 71% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
So, insiders of Aztech Global have a lot at stake and every decision they make on the company's future is important to them from a financial point of view.
Let's take a closer look to see what the different types of shareholders can tell us about Aztech Global.
See our latest analysis for Aztech Global
What Does The Institutional Ownership Tell Us About Aztech Global?
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.
Institutions have a very small stake in Aztech Global. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
Aztech Global is not owned by hedge funds. With a 70% stake, CEO Hong Yew Mun is the largest shareholder. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. The second and third largest shareholders are Hong Leong Investment Holdings Pte. Ltd. and Choo Seng Tan, with an equal amount of shares to their name at 0.6%.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Aztech Global
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems that insiders own more than half the Aztech Global Ltd. stock. This gives them a lot of power. So they have a S$330m stake in this S$463m business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 26% stake in Aztech Global. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
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 Aztech Global is showing 2 warning signs in our investment analysis , and 1 of those is significant...
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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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