Le Travenues Technology Limited's (NSE:IXIGO) high institutional ownership speaks for itself as stock continues to impress, up 8.5% over last week

Key Insights

• Significantly high institutional ownership implies Le Travenues Technology's stock price is sensitive to their trading actions
• 52% of the business is held by the top 10 shareholders
• 14% of Le Travenues Technology is held by insiders

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To get a sense of who is truly in control of Le Travenues Technology Limited (NSE:IXIGO), it is important to understand the ownership structure of the business. We can see that institutions own the lion's share in the company with 40% ownership. 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 ₹8.6b in market cap last week. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 95%.

Let's take a closer look to see what the different types of shareholders can tell us about Le Travenues Technology.

Check out our latest analysis for Le Travenues Technology

What Does The Institutional Ownership Tell Us About Le Travenues Technology?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Le Travenues Technology. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Le Travenues Technology's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Le Travenues Technology. The company's largest shareholder is Eurovest Pte Ltd, with ownership of 9.4%. In comparison, the second and third largest shareholders hold about 7.2% and 6.7% of the stock. Additionally, the company's CEO Aloke Bajpai directly holds 4.9% of the total shares outstanding.

We did some more digging and found that 10 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Le Travenues Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in Le Travenues Technology Limited. It has a market capitalization of just ₹109b, and insiders have ₹16b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 13% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Le Travenues Technology. 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 Equity Ownership

With an ownership of 6.7%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

We can see that Private Companies own 19%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Public Company Ownership

Public companies currently own 5.3% of Le Travenues Technology stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Le Travenues Technology better, we need to consider many other factors. For example, we've discovered 2 warning signs for Le Travenues Technology (1 is a bit concerning!) that you should be aware of before investing here.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.