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A look at the shareholders of Procter & Gamble Hygiene and Health Care Limited (NSE:PGHH) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned.
With a market capitalization of ₹355b, Procter & Gamble Hygiene and Health Care is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about PGHH.
See our latest analysis for Procter & Gamble Hygiene and Health Care
What Does The Institutional Ownership Tell Us About Procter & Gamble Hygiene and Health Care?
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.
We can see that Procter & Gamble Hygiene and Health Care does have institutional investors; and they hold 13% of the stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. 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 Procter & Gamble Hygiene and Health Care, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Procter & Gamble Hygiene and Health Care. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Procter & Gamble Hygiene and Health Care
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
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.