Individual investors own 27% of Centurion Corporation Limited (SGX:OU8) shares but private companies control 51% of the company

Key Insights

• The considerable ownership by private companies in Centurion indicates that they collectively have a greater say in management and business strategy

• 51% of the company is held by a single shareholder (Centurion Global Limited)

• Insider ownership in Centurion is 21%

To get a sense of who is truly in control of Centurion Corporation Limited (SGX:OU8), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are private companies with 51% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, individual investors make up 27% of the company’s shareholders.

In the chart below, we zoom in on the different ownership groups of Centurion.

See our latest analysis for Centurion

What Does The Institutional Ownership Tell Us About Centurion?

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.

Institutions have a very small stake in Centurion. That indicates that the company is on the radar of some funds, but it isn’t particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it’s the future that counts most.

Centurion is not owned by hedge funds. The company’s largest shareholder is Centurion Global Limited, with ownership of 51%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Meanwhile, the second and third largest shareholders, hold 7.6% and 5.3%, of the shares outstanding, respectively. Two of the top three shareholders happen to be Senior Key Executive and Co-Chairman of the Board, respectively. That is, insiders feature higher up in the heirarchy of the company’s top shareholders.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Centurion

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Centurion Corporation Limited. Insiders own S$73m worth of shares in the S$357m 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.

General Public Ownership

With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Centurion. 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.

Private Company Ownership

Our data indicates that Private Companies hold 51%, of the company’s shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand Centurion better, we need to consider many other factors. Case in point: We’ve spotted 3 warning signs for Centurion you should be aware of, and 2 of them make us uncomfortable.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.