How many shares of Shipping Corporation of India Limited (NSE: SCI) do institutions own?
A look at the shareholders of The Shipping Corporation of India Limited (NSE: SCI) can tell us which group is more powerful. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Companies that have been privatized tend to have low insider ownership.
Shipping Corporation of India is a small company with a market cap of 58 billion yen, so it may still go under the radar of many institutional investors. Looking at our data on ownership groups (below), it looks like institutional investors bought the company. Let’s take a closer look at what different types of shareholders can tell us about Shipping Corporation of India.
See our latest analysis for Shipping Corporation of India
What does institutional ownership tell us about Shipping Corporation of India?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
As you can see, institutional investors own a large share of Shipping Corporation of India. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they can be wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company with no history of growth. You can see Shipping Corporation of India’s historical profit and revenue below, but keep in mind that there is always more to tell.
Shipping Corporation of India is not owned by hedge funds. India is currently the largest shareholder in the company with 64% of the shares outstanding. This implies that they have majority control over the future of the business. In comparison, the second and third shareholders hold around 7.3% and 1.7% of the capital.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. We are not seeing any analyst coverage of the stock at this time, so the company is unlikely to be widely held.
Insider property of Shipping Corporation of India
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
Our most recent data indicates that insiders own less than 1% of The Shipping Corporation of India Limited. It appears that the board members have no more than 250 million yen of shares in the company 58 billion yen. Many small business investors prefer to see the board more heavily invested. You can click here to see if these insiders have bought or sold.
General public property
The general public, with a 21% stake in the company, will not be easily ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.
While it is worth considering the different groups that own a business, there are other factors that are even more important. To do this, you need to know the 1 warning sign we spotted with Shipping Corporation of India.
Sure, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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