With 39% ownership, Tuas Limited (ASX:TUA) insiders have a lot riding on the company's future
In This Article:
Key Insights
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Tuas' significant insider ownership suggests inherent interests in company's expansion
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The top 2 shareholders own 62% of the company
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Past performance of a company along with ownership data serve to give a strong idea about prospects for a business
Every investor in Tuas Limited (ASX:TUA) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 39% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).
So it follows, every decision made by insiders of Tuas regarding the company's future would be crucial to them.
Let's take a closer look to see what the different types of shareholders can tell us about Tuas.
See our latest analysis for Tuas
What Does The Institutional Ownership Tell Us About Tuas?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors have a fair amount of stake in Tuas. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Tuas' earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Tuas. Our data suggests that David Teoh, who is also the company's Top Key Executive, holds the most number of shares at 37%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. Washington H. Soul Pattinson and Company Limited is the second largest shareholder owning 25% of common stock, and Wilson Asset Management (International) Pty Ltd. holds about 4.9% of the company stock.
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 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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.