Sanjay Lodha Netweb Technologies India Limited's (NSE:NETWEB) CEO is the most bullish insider, and their stock value gained 7.6%last week

Key Insights

• Netweb Technologies India's significant insider ownership suggests inherent interests in company's expansion
• A total of 3 investors have a majority stake in the company with 57% ownership
• Institutional ownership in Netweb Technologies India is 15%

Every investor in Netweb Technologies India Limited (NSE:NETWEB) should be aware of the most powerful shareholder groups. 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.

As a result, insiders were the biggest beneficiaries of last week’s 7.6% gain.

Let's delve deeper into each type of owner of Netweb Technologies India, beginning with the chart below.

View our latest analysis for Netweb Technologies India

What Does The Institutional Ownership Tell Us About Netweb Technologies India?

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 Netweb Technologies India. 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 Netweb Technologies India's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Netweb Technologies India. The company's CEO Sanjay Lodha is the largest shareholder with 28% of shares outstanding. The second and third largest shareholders are Niraj Lodha and Navin Lodha, with an equal amount of shares to their name at 14%. Note that two of the top three shareholders are also Senior Key Executive and Member of the Board of Directors, respectively, once again pointing to significant ownership by company insiders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Netweb Technologies India

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 that insiders own more than half the Netweb Technologies India Limited stock. This gives them a lot of power. Given it has a market cap of ₹86b, that means they have ₹61b worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 13% stake in Netweb Technologies India. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Netweb Technologies India better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Netweb Technologies India you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.