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The big shareholder groups in Datamatics Global Services Limited (NSE:DATAMATICS) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.’
Datamatics Global Services is a smaller company with a market capitalization of ₹6.0b, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutional investors have not yet purchased much of the company. We can zoom in on the different ownership groups, to learn more about DATAMATICS.
See our latest analysis for Datamatics Global Services
What Does The Institutional Ownership Tell Us About Datamatics Global Services?
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.
Less than 5% of Datamatics Global Services is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
We note that hedge funds don’t have a meaningful investment in Datamatics Global Services. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Datamatics Global Services
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.
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 maintain a significant holding in Datamatics Global Services Limited. Insiders own ₹1.5b worth of shares in the ₹6.0b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.