Srinivasagopalan Rangarajan Data Patterns (India) Limited's (NSE:DATAPATTNS) CEO is the most bullish insider, and their stock value gained 13%last week

Key Insights

• Significant insider control over Data Patterns (India) implies vested interests in company growth
• 51% of the business is held by the top 4 shareholders
• Institutions own 18% of Data Patterns (India)

A look at the shareholders of Data Patterns (India) Limited (NSE:DATAPATTNS) can tell us which group is most powerful. The group holding the most number of shares in the company, around 54% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit ₹91b market cap following a 13% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Data Patterns (India).

View our latest analysis for Data Patterns (India)

What Does The Institutional Ownership Tell Us About Data Patterns (India)?

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.

We can see that Data Patterns (India) does have institutional investors; and they hold a good portion of the company's stock. 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 Data Patterns (India)'s earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Data Patterns (India). Looking at our data, we can see that the largest shareholder is the CEO Srinivasagopalan Rangarajan with 23% of shares outstanding. For context, the second largest shareholder holds about 19% of the shares outstanding, followed by an ownership of 6.3% by the third-largest shareholder. Interestingly, the second-largest shareholder, Rekha Rangarajan is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

On looking further, we found that 51% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Data Patterns (India)

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.

It seems that insiders own more than half the Data Patterns (India) Limited stock. This gives them a lot of power. That means insiders have a very meaningful ₹49b stake in this ₹91b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

With a 21% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Data Patterns (India). While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. For instance, we've identified 2 warning signs for Data Patterns (India) that you should be aware of.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.