Quick Heal Technologies Limited's (NSE:QUICKHEAL): Top Key Executive Sanjay Katkar is the most bullish insider, and their stock value gained 11% last week

Key Insights

• Insiders appear to have a vested interest in Quick Heal Technologies' growth, as seen by their sizeable ownership
• The top 2 shareholders own 50% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

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Every investor in Quick Heal Technologies Limited (NSE:QUICKHEAL) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 60% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders were the biggest beneficiaries of last week’s 11% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Quick Heal Technologies.

Check out our latest analysis for Quick Heal Technologies

What Does The Institutional Ownership Tell Us About Quick Heal Technologies?

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 Quick Heal Technologies 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. 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 Quick Heal Technologies, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Quick Heal Technologies. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Quick Heal Technologies' case, its Top Key Executive, Sanjay Katkar, is the largest shareholder, holding 36% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 15% and 6.8%, of the shares outstanding, respectively. Interestingly, the second and third-largest shareholders also happen to be the Chief Operating Officer and Chairman of the Board, respectively. This once again signifies considerable insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 50% stake.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Quick Heal Technologies

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems that insiders own more than half the Quick Heal Technologies Limited stock. This gives them a lot of power. So they have a ₹13b stake in this ₹22b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 32% stake in Quick Heal Technologies. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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 example, we've discovered 4 warning signs for Quick Heal Technologies (1 can't be ignored!) that you should be aware of before investing here.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.