Oracle Financial Services Software Limited's (NSE:OFSS) top owners are public companies with 73% stake, while 14% is held by individual investors

Key Insights

• Oracle Financial Services Software's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• The largest shareholder of the company is Oracle Corporation with a 73% stake
• Insiders have sold recently

Every investor in Oracle Financial Services Software Limited (NSE:OFSS) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 73% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, individual investors make up 14% of the company’s shareholders.

Let's take a closer look to see what the different types of shareholders can tell us about Oracle Financial Services Software.

View our latest analysis for Oracle Financial Services Software

What Does The Institutional Ownership Tell Us About Oracle Financial Services Software?

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.

As you can see, institutional investors have a fair amount of stake in Oracle Financial Services Software. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Oracle Financial Services Software, (below). Of course, keep in mind that there are other factors to consider, too.

Oracle Financial Services Software is not owned by hedge funds. Oracle Corporation is currently the largest shareholder, with 73% of shares outstanding. This implies that they have majority interest control of the future of the company. Kotak Mahindra Asset Management Company Limited is the second largest shareholder owning 3.1% of common stock, and Life Insurance Corporation of India, Asset Management Arm holds about 2.1% of the company stock.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Oracle Financial Services Software

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.

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 most recent data indicates that insiders own less than 1% of Oracle Financial Services Software Limited. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own ₹4.3b worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 14% 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.

Public Company Ownership

Public companies currently own 73% of Oracle Financial Services Software stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 2 warning signs for Oracle Financial Services Software that you should be aware of.

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.