Jyoti CNC Automation Limited's (NSE:JYOTICNC) most bullish insider, CEO Parakramsinh Jadeja must be pleased with the recent 3.5% gain

Key Insights

• Significant insider control over Jyoti CNC Automation implies vested interests in company growth
• A total of 3 investors have a majority stake in the company with 58% ownership
• Institutions own 13% of Jyoti CNC Automation

A look at the shareholders of Jyoti CNC Automation Limited (NSE:JYOTICNC) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 59% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit ₹232b market cap following a 3.5% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Jyoti CNC Automation.

Check out our latest analysis for Jyoti CNC Automation

What Does The Institutional Ownership Tell Us About Jyoti CNC Automation?

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.

As you can see, institutional investors have a fair amount of stake in Jyoti CNC Automation. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Jyoti CNC Automation's earnings history below. Of course, the future is what really matters.

Jyoti CNC Automation is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Parakramsinh Jadeja with 27% of shares outstanding. For context, the second largest shareholder holds about 16% of the shares outstanding, followed by an ownership of 14% by the third-largest shareholder.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Jyoti CNC Automation

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our most recent data indicates that insiders own the majority of Jyoti CNC Automation Limited. This means they can collectively make decisions for the company. Given it has a market cap of ₹232b, that means insiders have a whopping ₹138b worth of shares in their own names. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jyoti CNC Automation. 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

Our data indicates that Private Companies hold 16%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Jyoti CNC Automation you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.