The recent 11% gain must have brightened Top Key Executive Raamdeo Agrawal's week, Motilal Oswal Financial Services Limited's (NSE:MOTILALOFS) most bullish insider

Key Insights

• Insiders appear to have a vested interest in Motilal Oswal Financial Services' growth, as seen by their sizeable ownership
• A total of 2 investors have a majority stake in the company with 67% ownership
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

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To get a sense of who is truly in control of Motilal Oswal Financial Services Limited (NSE:MOTILALOFS), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 75% 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 ₹382b market cap following a 11% gain in the stock.

Let's delve deeper into each type of owner of Motilal Oswal Financial Services, beginning with the chart below.

See our latest analysis for Motilal Oswal Financial Services

What Does The Institutional Ownership Tell Us About Motilal Oswal Financial 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 Motilal Oswal Financial 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 Motilal Oswal Financial Services' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Motilal Oswal Financial Services. Our data suggests that Raamdeo Agrawal, who is also the company's Top Key Executive, holds the most number of shares at 34%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. For context, the second largest shareholder holds about 33% of the shares outstanding, followed by an ownership of 5.1% by the third-largest shareholder. Interestingly, the second-largest shareholder, Motilal Oswal is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 67% stake.

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 Motilal Oswal Financial Services

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 information suggests that insiders own more than half of Motilal Oswal Financial Services Limited. This gives them effective control of the company. Given it has a market cap of ₹382b, that means insiders have a whopping ₹286b 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 17% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Motilal Oswal Financial Services. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Motilal Oswal Financial Services better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Motilal Oswal Financial Services .

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.