While institutions own 45% of Venture Corporation Limited (SGX: V03), individual investors are its major shareholders with 47% ownership.

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To get an idea of ​​who actually controls Venture Corporation Limited (SGX: V03), it is important to understand the ownership structure of the company. We can see that individual investors hold the lion’s share of the company with 47% ownership. In other words, the group faces the maximum upside potential (or downside risk).

Meanwhile, institutions represent 45% of the company’s shareholders. Big companies usually have institutions as shareholders, and we usually see insiders owning shares in small companies.

Let’s take a closer look at what different types of shareholders can tell us about Venture.

Check out our latest analysis for Venture

SGX:V03 Ownership Distribution November 6, 2022

What does institutional ownership tell us about Venture?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

We can see that Venture has institutional investors; and they own a good part of the shares of the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking Venture’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

earnings-and-revenue-growth
SGX:V03 Earnings and Revenue Growth November 6, 2022

Hedge funds don’t have a lot of shares in Venture. From our data, we deduce that the largest shareholder is Ngit Liong Wong (who also holds the title of Top Key Executive) with 7.1% of the shares outstanding. It’s generally considered a good sign when insiders hold a significant amount of stock in the company, and in that case, we’re happy to see a company insider act as a key stakeholder. For context, the second largest shareholder owns approximately 6.8% of the outstanding shares, followed by 6.0% ownership by the third largest shareholder.

A closer look at our ownership data shows that the top 25 shareholders collectively own less than half of the register, suggesting a large group of small shareholders where no single shareholder has a majority.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.

Venture Insider Ownership

The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

We can see that insiders own shares in Venture Corporation Limited. Insiders have a significant stake worth S$391 million. Most would see this as a real positive. It’s good to see this level of investment by insiders. You can check here if these insiders have bought recently.

General public property

With a 47% stake, the general public, consisting mostly of individual investors, has some influence on Venture. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.

Next steps:

I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. Take risks for example – Venture a 1 warning sign we think you should know.

At the end of the day the future is the most important. You can access this free analyst forecast report for the company.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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