Yatharth Hospital & Trauma Care Services Limited's (NSE:YATHARTH) Top Key Executive Ajay Tyagi is the most upbeat insider, and their holdings increased by 14% last week

Key Insights

• Insiders appear to have a vested interest in Yatharth Hospital & Trauma Care Services' growth, as seen by their sizeable ownership
• 67% of the business is held by the top 2 shareholders
• Institutional ownership in Yatharth Hospital & Trauma Care Services is 14%

A look at the shareholders of Yatharth Hospital & Trauma Care Services Limited (NSE:YATHARTH) can tell us which group is most powerful. With 69% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders were the biggest beneficiaries of last week’s 14% gain.

Let's delve deeper into each type of owner of Yatharth Hospital & Trauma Care Services, beginning with the chart below.

Check out our latest analysis for Yatharth Hospital & Trauma Care Services

What Does The Institutional Ownership Tell Us About Yatharth Hospital & Trauma Care Services?

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.

We can see that Yatharth Hospital & Trauma Care Services does have institutional investors; and they hold a good portion of the company's stock. 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 Yatharth Hospital & Trauma Care Services' historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Yatharth Hospital & Trauma Care Services. Our data suggests that Ajay Tyagi, who is also the company's Top Key Executive, holds the most number of shares at 39%. 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 28% of the shares outstanding, followed by an ownership of 2.9% by the third-largest shareholder. Interestingly, the second-largest shareholder, Kapil Tyagi is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. 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 Yatharth Hospital & Trauma Care Services

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 information suggests that insiders own more than half of Yatharth Hospital & Trauma Care Services Limited. This gives them effective control of the company. So they have a ₹37b stake in this ₹54b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 17% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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.