Can We See Significant Institutional Ownership On The KSK Energy Ventures Limited (NSE:KSK) Share Register?
A look at the shareholders of KSK Energy Ventures Limited (NSE:KSK) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.
KSK Energy Ventures is a smaller company with a market capitalization of ₹144m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about KSK Energy Ventures.
Check out our latest analysis for KSK Energy Ventures
What Does The Institutional Ownership Tell Us About KSK Energy Ventures?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors own 17% of KSK Energy Ventures. 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. 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 KSK Energy Ventures's earnings history, below. Of course, the future is what really matters.
Hedge funds don't have many shares in KSK Energy Ventures. Looking at our data, we can see that the largest shareholder is KSK Power Ventur plc with 30% of shares outstanding. The second largest shareholder with 6.2%, is Lehman Brothers Holdings Inc, Investment Banking and Brokerage Investments, followed by Tree Line Advisors (Hong Kong) Ltd., with an ownership of 2.9%.
We also observed that the top 10 shareholders account for 51% of the register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of KSK Energy Ventures
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our data suggests that insiders own under 1% of KSK Energy Ventures Limited in their own names. However, it's possible that insiders might have an indirect interest through a more complex structure. It appears that the board holds about ₹1.1m worth of stock. This compares to a market capitalization of ₹144m. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.
General Public Ownership
The general public, with a 47% stake in the company, will not easily be ignored. 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.
Private Company Ownership
We can see that Private Companies own 3.3%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Public Company Ownership
We can see that public companies hold 32%, of the KSK shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand KSK Energy Ventures better, we need to consider many other factors. For example, we've discovered 3 warning signs for KSK Energy Ventures (2 are significant!) that you should be aware of before investing here.
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. 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. Thank you for reading.