The big shareholder groups in Gammon Infrastructure Projects Limited (NSE:GAMMNINFRA) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.
Gammon Infrastructure Projects is not a large company by global standards. It has a market capitalization of ₹763m, which means it wouldn’t have the attention of many institutional investors. Taking a look at the our data on the ownership groups (below), it’s seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about GAMMNINFRA.
View our latest analysis for Gammon Infrastructure Projects
What Does The Institutional Ownership Tell Us About Gammon Infrastructure Projects?
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 Gammon Infrastructure Projects does have institutional investors; and they hold 31% of the stock. 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. 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 Gammon Infrastructure Projects, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don’t have many shares in Gammon Infrastructure Projects. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Gammon Infrastructure Projects
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.
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.
Shareholders would probably be interested to learn that insiders own shares in Gammon Infrastructure Projects Limited. As individuals, the insiders collectively own ₹15m worth of the ₹763m company. This shows at least some alignment, but I usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.