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

Key Insights

• Significant insider control over Sun TV Network implies vested interests in company growth
• Kalanithi Maran owns 75% of the company
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls Sun TV Network Limited (NSE:SUNTV), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 79% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

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.

View our latest analysis for Sun TV Network

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

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 Sun TV Network. 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. 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. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Sun TV Network's case, its Top Key Executive, Kalanithi Maran, is the largest shareholder, holding 75% of shares outstanding. Selvam Selvi is the second largest shareholder owning 1.8% of common stock, and S. Selvam holds about 1.7% of the company stock. Interestingly, the third-largest shareholder, S. Selvam is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

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 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.

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 Sun TV Network Limited. This gives them effective control of the company. Insiders own ₹220b worth of shares in the ₹281b company. That's extraordinary! 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

The general public-- including retail investors -- own 12% 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.

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.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.