With 79% ownership, Sun TV Network Limited (NSE:SUNTV) insiders have a lot riding on the company's future

Key Insights

• Sun TV Network's significant insider ownership suggests inherent interests in company's expansion
• 75% of the company is held by a single shareholder (Kalanithi Maran)
• Institutional ownership in Sun TV Network is 10%

To get a sense of who is truly in control of Sun TV Network Limited (NSE:SUNTV), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 79% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

So it follows, every decision made by insiders of Sun TV Network regarding the company's future would be crucial to them.

In the chart below, we zoom in on the different ownership groups of Sun TV Network.

See our latest analysis for Sun TV Network

What Does The Institutional Ownership Tell Us About Sun TV Network?

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.

We can see that Sun TV Network does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Sun TV Network's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Sun TV Network. From our data, we infer that the largest shareholder is Kalanithi Maran (who also holds the title of Top Key Executive) with 75% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. For context, the second largest shareholder holds about 2.3% of the shares outstanding, followed by an ownership of 1.8% by the third-largest shareholder.

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 Sun TV Network

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. 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.

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 most recent data indicates that insiders own the majority of Sun TV Network Limited. This means they can collectively make decisions for the company. Given it has a market cap of ₹266b, that means insiders have a whopping ₹209b worth of shares in their own names. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

The general public, who are usually individual investors, hold a 11% stake in Sun TV Network. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Sun TV Network better, we need to consider many other factors. For example, we've discovered 1 warning sign for Sun TV Network 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.