Institutions' substantial holdings in UTI Asset Management implies that they have significant influence over the company's share price
58% of the business is held by the top 4 shareholders
Insiders have sold recently
If you want to know who really controls UTI Asset Management Company Limited (NSE:UTIAMC), then you'll have to look at the makeup of its share registry.And the group that holds the biggest piece of the pie are institutions with 90% ownership.Put another way, the group faces the maximum upside potential (or downside risk).
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors.Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
Let's take a closer look to see what the different types of shareholders can tell us about UTI Asset Management.
Check out our latest analysis for UTI Asset Management
NSEI:UTIAMC Ownership Breakdown November 23rd 2024
What Does The Institutional Ownership Tell Us About UTI Asset Management?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
UTI Asset Management already has institutions on the share registry. Indeed, they own a respectable stake in the company.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.When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see UTI Asset Management's historic earnings and revenue below, but keep in mind there's always more to the story.
NSEI:UTIAMC Earnings and Revenue Growth November 23rd 2024
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions.Hedge funds don't have many shares in UTI Asset Management.T. Rowe Price Group, Inc. is currently the company's largest shareholder with 23% of shares outstanding. With 15% and 9.9% of the shares outstanding respectively, Punjab National Bank, Asset Management Arm and Life Insurance Corporation of India, Asset Management Arm are the second and third largest shareholders.
Our research also brought to light the fact that roughly 58% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.
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 UTI Asset Management
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 most recent data indicates that insiders own less than 1% of UTI Asset Management Company Limited.It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around ₹106m worth of shares (at current prices).Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 10% stake in UTI Asset Management. 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:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.
