Despite recent sales, Transindia Real Estate Limited (NSE:TREL) insiders still control 68% of the company

Key Insights

• Insiders appear to have a vested interest in Transindia Real Estate's growth, as seen by their sizeable ownership
• Shashi Kiran Shetty owns 61% of the company
• Recent sales by insiders

If you want to know who really controls Transindia Real Estate Limited (NSE:TREL), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 68% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Insiders own the top position in the company’s share registry despite recent sales and as a result, were the biggest beneficiaries of last week’s 11% gain.

Let's delve deeper into each type of owner of Transindia Real Estate, beginning with the chart below.

View our latest analysis for Transindia Real Estate

What Does The Institutional Ownership Tell Us About Transindia Real Estate?

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.

Less than 5% of Transindia Real Estate is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

It looks like hedge funds own 5.6% of Transindia Real Estate shares. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Shashi Kiran Shetty is currently the company's largest shareholder with 61% of shares outstanding. This implies that they have majority interest control of the future of the company. With 5.6% and 3.0% of the shares outstanding respectively, Conifer Management, LLC and Shloka Shetty are the second and third largest shareholders. Shloka Shetty, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Transindia Real Estate

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.

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 information suggests that insiders own more than half of Transindia Real Estate Limited. This gives them effective control of the company. So they have a ₹7.9b stake in this ₹12b business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Transindia Real Estate. 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 Transindia Real Estate better, we need to consider many other factors. For example, we've discovered 3 warning signs for Transindia Real Estate (2 don't sit too well with us!) that you should be aware of before investing here.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com