What type of shareholders make up the share register of Abbott India Limited (NSE: ABBOTINDIA)?
Every investor in Abbott India Limited (NSE: ABBOTINDIA) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in smaller companies. Companies that were previously owned by the state tend to have fewer insiders.
With a market cap of 463 billion yen, Abbott India is pretty big. We would expect to see institutional investors on the register. Companies of this size are also generally well known to retail investors. In the graph below, we can see that institutional investors have bought into the company. We can zoom in on the different property groups to find out more about Abbott India.
Check out our latest analysis for Abbott India
What does institutional ownership tell us about Abbott India?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
As you can see, institutional investors own a large stake in Abbott India. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company with no history of growth. You can see Abbott India’s historical revenue and income below, but keep in mind that there is always more to tell.
We note that the hedge funds do not have a significant investment in Abbott India. Looking at our data, we can see that the largest shareholder is Abbott Laboratories with 75% of the shares outstanding. With such a huge stake in the property, we infer that they have significant control over the future of the business. Meanwhile, the second and third shareholders respectively hold 1.6% and 1.2% of the outstanding shares.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. Our information suggests there is no analyst coverage of the stock, so it is likely little known.
Abbott India Insider Property
The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders of Abbott India Limited own less than 1% of the company. It’s a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case, insiders own 5.4 million yen of shares. Arguably recent purchases and sales are equally important to consider. You can click here to see if any insiders have bought or sold.
General public property
The general public, with a 17% stake in the company, will not be easily ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.
Public enterprise ownership
It seems to us that state-owned companies own 75% of Abbott India. It may be a strategic interest and the two companies may have related business interests. They may have defused. This exploitation probably deserves further study.
I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well.
I like to dive deeper on the performance of a company in the past. You can access this interactive graphic past profits, income and cash flow, free of charge.
If you would rather consult with another company – one with potentially superior finances – then don’t miss this free list of interesting companies, supported by solid financial data.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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