Institutional investors are 360 One Wam Limited's (NSE:360ONE) biggest bettors and were rewarded after last week's ₹8.4b market cap gain

Key Insights

• Given the large stake in the stock by institutions, 360 One Wam's stock price might be vulnerable to their trading decisions
• A total of 5 investors have a majority stake in the company with 50% ownership
• Recent sales by insiders

Every investor in 360 One Wam Limited (NSE:360ONE) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 38% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, institutional investors ended up benefitting the most after the company hit ₹258b in market cap. The one-year return on investment is currently 72% and last week's gain would have been more than welcomed.

Let's take a closer look to see what the different types of shareholders can tell us about 360 One Wam.

Check out our latest analysis for 360 One Wam

What Does The Institutional Ownership Tell Us About 360 One Wam?

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 360 One Wam. 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. 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 360 One Wam'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 360 One Wam. BC Asia Investments X Limited is currently the largest shareholder, with 25% of shares outstanding. With 13% and 5.5% of the shares outstanding respectively, Capital Research and Management Company and Nirmal Jain are the second and third largest shareholders. Nirmal Jain, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 360 One Wam

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 a reasonable proportion of 360 One Wam Limited. It is very interesting to see that insiders have a meaningful ₹38b stake in this ₹258b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public-- including retail investors -- own 16% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

It seems that Private Companies own 31%, of the 360 One Wam stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand 360 One Wam better, we need to consider many other factors. For example, we've discovered 3 warning signs for 360 One Wam (1 is concerning!) that you should be aware of before investing here.

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.