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The big shareholder groups in Solara Active Pharma Sciences Limited (NSE:SOLARA) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes ‘a business with enduring competitive advantages that is run by able and owner-oriented people’. So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.
Solara Active Pharma Sciences is a smaller company with a market capitalization of ₹7.5b, so it may still be flying under the radar of many institutional investors. Taking a look at the our data on the ownership groups (below), it’s seems that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about SOLARA.
Check out our latest analysis for Solara Active Pharma Sciences
What Does The Institutional Ownership Tell Us About Solara Active Pharma Sciences?
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.
Solara Active Pharma Sciences already has institutions on the share registry. Indeed, they own 28% of 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. 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 Solara Active Pharma Sciences’s earnings history, below. Of course, the future is what really matters.
Hedge funds don’t have many shares in Solara Active Pharma Sciences. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Solara Active Pharma Sciences
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.
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.
Our information suggests that insiders maintain a significant holding in Solara Active Pharma Sciences Limited. Insiders own ₹1.0b worth of shares in the ₹7.5b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.