Top Key Executive Raj Narayanam, Zaggle Prepaid Ocean Services Limited's (NSE:ZAGGLE) largest shareholder sees value of holdings go down 8.9% after recent drop

Key Insights

• Zaggle Prepaid Ocean Services' significant insider ownership suggests inherent interests in company's expansion
• 52% of the business is held by the top 5 shareholders
• Institutions own 22% of Zaggle Prepaid Ocean Services

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To get a sense of who is truly in control of Zaggle Prepaid Ocean Services Limited (NSE:ZAGGLE), 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 45% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to ₹50b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of Zaggle Prepaid Ocean Services, beginning with the chart below.

Check out our latest analysis for Zaggle Prepaid Ocean Services

What Does The Institutional Ownership Tell Us About Zaggle Prepaid Ocean Services?

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.

Zaggle Prepaid Ocean Services already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Zaggle Prepaid Ocean Services' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Zaggle Prepaid Ocean Services. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Zaggle Prepaid Ocean Services' case, its Top Key Executive, Raj Narayanam, is the largest shareholder, holding 34% of shares outstanding. Avinash Godkhindi is the second largest shareholder owning 5.7% of common stock, and Zuzu Software Services Private Limited holds about 4.2% of the company stock. Interestingly, the second-largest shareholder, Avinash Godkhindi is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. 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 Zaggle Prepaid Ocean Services

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 insiders own a significant proportion of Zaggle Prepaid Ocean Services Limited. Insiders have a ₹22b stake in this ₹50b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 25% 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.

Private Company Ownership

It seems that Private Companies own 8.3%, of the Zaggle Prepaid Ocean Services stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

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