With 85% ownership, Oxley Holdings Limited (SGX:5UX) insiders have a lot at stake

• Significant insider control over Oxley Holdings implies vested interests in company growth

• The top 2 shareholders own 73% of the company

• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

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Every investor in Oxley Holdings Limited (SGX:5UX) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion’s share in the company with 85% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

So it follows, every decision made by insiders of Oxley Holdings regarding the company’s future would be crucial to them.

Let’s delve deeper into each type of owner of Oxley Holdings, beginning with the chart below.

See our latest analysis for Oxley Holdings

Small companies that are not very actively traded often lack institutional investors, but it’s less common to see large companies without them.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. Oxley Holdings might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Oxley Holdings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Chiat Kwong Ching with 44% of shares outstanding. See Ching Low is the second largest shareholder owning 29% of common stock, and Wee Sien Tee holds about 11% of the company stock. Interestingly, the second-largest shareholder, See Ching Low is also Top Key Executive, again, pointing towards strong insider ownership amongst the company’s top shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company’s shares, implying that they have considerable power to influence the company’s decisions.

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. We’re not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 own more than half of Oxley Holdings Limited. This gives them effective control of the company. So they have a S$356m stake in this S$418m business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Oxley Holdings. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

It’s always worth thinking about the different groups who own shares in a company. But to understand Oxley Holdings better, we need to consider many other factors. Be aware that Oxley Holdings is showing 1 warning sign in our investment analysis , you should know about…

If you would prefer check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, backed by strong financial data.

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.