29-04-2025
Individual investors invested in SNS Network Technology Berhad (KLSE:SNS) up 12% last week, insiders too were rewarded
The considerable ownership by individual investors in SNS Network Technology Berhad indicates that they collectively have a greater say in management and business strategy
50% of the business is held by the top 5 shareholders
Insiders own 44% of SNS Network Technology Berhad
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If you want to know who really controls SNS Network Technology Berhad (KLSE:SNS), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 47% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Following a 12% increase in the stock price last week, individual investors profited the most, but insiders who own 44% stock also stood to gain from the increase.
Let's take a closer look to see what the different types of shareholders can tell us about SNS Network Technology Berhad.
View our latest analysis for SNS Network Technology Berhad
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.
As you can see, institutional investors have a fair amount of stake in SNS Network Technology Berhad. 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 SNS Network Technology Berhad's 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 SNS Network Technology Berhad. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In SNS Network Technology Berhad's case, its Head of Marketing, Wai Onn Pah, is the largest shareholder, holding 29% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.4% and 6.0%, of the shares outstanding, respectively. Interestingly, the second-largest shareholder, Wei Ming Siow is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders. Furthermore, CEO Yun Hung Ko is the owner of 4.4% of the company's shares.
To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
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.
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 information suggests that insiders maintain a significant holding in SNS Network Technology Berhad. Insiders own RM337m worth of shares in the RM771m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
The general public-- including retail investors -- own 47% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 1 warning sign for SNS Network Technology Berhad that you should be aware of.
Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
