Retail investors who hold 34% of Top Glove Corporation Bhd. (KLSE:TOPGLOV) gained 14%, insiders profited as well

Simply Wall St · 6d ago

Key Insights

  • Significant control over Top Glove Corporation Bhd by retail investors implies that the general public has more power to influence management and governance-related decisions
  • The top 6 shareholders own 52% of the company
  • Insiders have sold recently

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A look at the shareholders of Top Glove Corporation Bhd. (KLSE:TOPGLOV) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 34% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While retail investors were the group that benefitted the most from last week’s RM882m market cap gain, insiders too had a 30% share in those profits.

Let's take a closer look to see what the different types of shareholders can tell us about Top Glove Corporation Bhd.

View our latest analysis for Top Glove Corporation Bhd

ownership-breakdown
KLSE:TOPGLOV Ownership Breakdown April 15th 2025

What Does The Institutional Ownership Tell Us About Top Glove Corporation Bhd?

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

We can see that Top Glove Corporation Bhd does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Top Glove Corporation Bhd, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
KLSE:TOPGLOV Earnings and Revenue Growth April 15th 2025

Hedge funds don't have many shares in Top Glove Corporation Bhd. Our data suggests that Wee Chai Lim, who is also the company's Top Key Executive, holds the most number of shares at 28%. 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. For context, the second largest shareholder holds about 7.8% of the shares outstanding, followed by an ownership of 6.9% by the third-largest shareholder.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Top Glove Corporation Bhd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

It seems insiders own a significant proportion of Top Glove Corporation Bhd.. It has a market capitalization of just RM7.1b, and insiders have RM2.1b worth of shares in their own names. That's quite significant. 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-- including retail investors -- own 34% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 7.2%, of the Top Glove Corporation Bhd stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

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. Be aware that Top Glove Corporation Bhd is showing 2 warning signs in our investment analysis , you should know about...

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.