Institutional investors are Computer Age Management Services Limited's (NSE:CAMS) biggest bettors and were rewarded after last week's ₹14b market cap gain

Key Insights

• Significantly high institutional ownership implies Computer Age Management Services' stock price is sensitive to their trading actions
• A total of 21 investors have a majority stake in the company with 50% ownership
• Insiders have sold recently

If you want to know who really controls Computer Age Management Services Limited (NSE:CAMS), then you'll have to look at the makeup of its share registry. With 65% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And things are looking up for institutional investors after the company gained ₹14b in market cap last week. The one-year return on investment is currently 81% and last week's gain would have been more than welcomed.

Let's delve deeper into each type of owner of Computer Age Management Services, beginning with the chart below.

Check out our latest analysis for Computer Age Management Services

What Does The Institutional Ownership Tell Us About Computer Age Management Services?

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.

We can see that Computer Age Management Services 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 Computer Age Management Services' earnings history below. Of course, the future is what really matters.

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Computer Age Management Services is not owned by hedge funds. FMR LLC is currently the largest shareholder, with 5.9% of shares outstanding. With 5.3% and 4.4% of the shares outstanding respectively, White Oak Capital Management, Inc. and Life Insurance Corporation of India, Asset Management Arm are the second and third largest shareholders.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 21 shareholders, meaning that no single shareholder has a majority interest in the ownership.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Computer Age Management Services

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Shareholders would probably be interested to learn that insiders own shares in Computer Age Management Services Limited. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around ₹8.0b worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 31% stake in Computer Age Management Services. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Computer Age Management Services better, we need to consider many other factors. Take risks for example - Computer Age Management Services has 2 warning signs we think you should be aware of.

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.

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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.