Insiders continue to buy Aimtron Electronics Limited (NSE:AIMTRON) and now own 71% shares

Key Insights

• Insiders appear to have a vested interest in Aimtron Electronics' growth, as seen by their sizeable ownership
• Mukesh Vasani owns 65% of the company
• Insiders have bought recently

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A look at the shareholders of Aimtron Electronics Limited (NSE:AIMTRON) can tell us which group is most powerful. The group holding the most number of shares in the company, around 71% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

A quick look at our data suggests that insiders have been buying shares in the company recently and their bets paid off last week after the stock gained 17%.

Let's delve deeper into each type of owner of Aimtron Electronics, beginning with the chart below.

View our latest analysis for Aimtron Electronics

What Does The Lack Of Institutional Ownership Tell Us About Aimtron Electronics?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. Alternatively, there might be something about the company that has kept institutional investors away. Aimtron Electronics might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Aimtron Electronics is not owned by hedge funds. Mukesh Vasani is currently the largest shareholder, with 65% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Meanwhile, the second and third largest shareholders, hold 5.8% and 0.05%, of the shares outstanding, respectively. Sharmilaben Bambhaniya, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Aimtron Electronics

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.

Our most recent data indicates that insiders own the majority of Aimtron Electronics Limited. This means they can collectively make decisions for the company. Given it has a market cap of ₹9.4b, that means they have ₹6.7b worth of shares. 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

The general public-- including retail investors -- own 29% 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.

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 Aimtron Electronics that you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.