Allcargo Logistics Limited's (NSE:ALLCARGO): Top Key Executive Shashi Kiran Shetty is the most bullish insider, and their stock value gained 11% last week

Key Insights

• Significant insider control over Allcargo Logistics implies vested interests in company growth
• The largest shareholder of the company is Shashi Kiran Shetty with a 57% stake
• Institutions own 12% of Allcargo Logistics

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Every investor in Allcargo Logistics Limited (NSE:ALLCARGO) should be aware of the most powerful shareholder groups. With 64% stake, individual insiders possess the maximum shares in the company. 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 scored the highest last week as the company hit ₹34b market cap following a 11% gain in the stock.

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

See our latest analysis for Allcargo Logistics

What Does The Institutional Ownership Tell Us About Allcargo Logistics?

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 Allcargo Logistics does have institutional investors; and they hold a good portion of the company's stock. 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 Allcargo Logistics, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Allcargo Logistics. From our data, we infer that the largest shareholder is Shashi Kiran Shetty (who also holds the title of Top Key Executive) with 57% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. Conifer Management, LLC is the second largest shareholder owning 5.0% of common stock, and Arathi Shetty holds about 3.0% of the company stock. Interestingly, the third-largest shareholder, Arathi Shetty is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders. Additionally, the company's CEO Adarsh Hegde directly holds 2.9% of the total shares outstanding.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Allcargo Logistics

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 information suggests that insiders own more than half of Allcargo Logistics Limited. This gives them effective control of the company. That means they own ₹22b worth of shares in the ₹34b company. That's quite meaningful. 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

With a 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Allcargo Logistics. 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 Allcargo Logistics better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Allcargo Logistics (of which 1 shouldn't be ignored!) 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.