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A look at the shareholders of Tata Motors Limited (NSE: TATAMTRDVR) can tell us which group is the most powerful.
Institutions often own shares of more established companies, while it is not unusual to see insiders own a good share of small businesses.
We also tend to see a decrease in the participation of insiders in companies that were previously owned by the state.
Tata Motors is a very big company. It has a market capitalization of ₹ 682b. Normally, institutions would own a large part of a company of this size.
Looking at our property group data (below), it seems that
the institutions hold shares in the company.
Let's deepen each type of owner to know more about TATAMTRDVR.
Discover our latest badysis for Tata Motors
What does institutional ownership tell us about Tata Motors?
Institutional investors generally compare their own returns to the returns of a commonly followed index. As a result, they generally consider buying larger companies included in the relevant benchmark.
We can see that Tata Motors has institutional investors; and they hold 41% of the stock.
This may indicate that the company has some degree of credibility in the investor community. However, it is better not to rely on the supposed validation of institutional investors. They, too, sometimes go wrong.
When several institutions have a stock, there is always a risk that they will have an "overpopulated market". When such a business goes awry, many parties may compete to sell their stock quickly. This risk is higher in a company with no growth history. You can see Tata Motors' historical revenues and incomes below, but keep in mind that history is always more important.
Hedge funds do not have a lot of stock in Tata Motors.
There are many badysts who cover the stock, so it is interesting to see what they expect as well.
Insider property of Tata Motors
While the precise definition of an insider may be subjective, almost everyone views board members as insiders.
The management of the company responds to the board of directors; and these should represent the interests of shareholders. It should be noted that sometimes senior managers are themselves members of the board.
Insider ownership is positive when it indicates that leaders think like the true owners of the company. However, a strong insider property can also confer immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own less than 1% of Tata Motors Limited.
We note however that it is possible that insiders have an indirect interest through a private company or other corporate structure.
This is a very large company, so it would be surprising to see insiders own a large part of it. Although their participation is less than 1%, we can see that board members collectively hold $ 6.4 million worth of shares (at current prices).
It can be argued that recent purchases and sales are recent. You can click here to see if insiders have bought or sold.
Property of the general public
The general public, with a 24% stake in the company, will not be easily ignored.
Although this group may not necessarily set the tone, it can certainly have a real influence on the management of the company.
Owned by a private company
Our data shows that private companies own 32% of the company's shares.
It is difficult to draw conclusions from this alone. It is therefore interesting to find out who owns these private companies. Insiders or other related parties may have an interest in shares of a public company through a separate private company.
Next steps:
I find it very interesting to look at exactly who owns a business. But to really understand better, we must also consider other information.
Many find it useful thoroughly examine the performance of a company in the past. You can access this detailed graph previous revenues, revenues and cash flows.
If you prefer to find out what badysts are predicting in terms of future growth, do not miss this opportunity. free report on badysts' forecasts.
NB: The figures in this article are based on data from the last 12 months, which refers to the 12-month period ending on the last day of the month of the date of the financial statements. This may not correspond to the figures in the annual report of the year.
Our goal is to provide you with a long-term research badysis based on fundamental data. Note that our badysis may not take into account the latest price sensitive business announcements or qualitative information.
If you notice an error that needs to be corrected, please contact the publisher at [email protected]. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.
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