Latent View Analytics Limited's (NSE:LATENTVIEW) Top Key Executive Adugudi Venkatraman is the most upbeat insider, and their holdings increased by 5.5% last week

Simply Wall St · 10/19 02:22

Key Insights

  • Insiders appear to have a vested interest in Latent View Analytics' growth, as seen by their sizeable ownership
  • 57% of the company is held by a single shareholder (Adugudi Venkatraman)
  • Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of Latent View Analytics Limited (NSE:LATENTVIEW), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 74% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit ₹100b market cap following a 5.5% gain in the stock.

Let's delve deeper into each type of owner of Latent View Analytics, beginning with the chart below.

See our latest analysis for Latent View Analytics

ownership-breakdown
NSEI:LATENTVIEW Ownership Breakdown October 19th 2024

What Does The Institutional Ownership Tell Us About Latent View Analytics?

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.

Institutions have a very small stake in Latent View Analytics. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

earnings-and-revenue-growth
NSEI:LATENTVIEW Earnings and Revenue Growth October 19th 2024

Latent View Analytics is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Latent View Analytics' case, its Top Key Executive, Adugudi Venkatraman, is the largest shareholder, holding 57% of shares outstanding. For context, the second largest shareholder holds about 8.2% of the shares outstanding, followed by an ownership of 4.9% by the third-largest shareholder. Interestingly, the second-largest shareholder, Pramadwathi Jandhyala is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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 Latent View Analytics

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems that insiders own more than half the Latent View Analytics Limited stock. This gives them a lot of power. Given it has a market cap of ₹100b, that means insiders have a whopping ₹74b worth of shares in their own names. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

With a 22% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Latent View Analytics. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Latent View Analytics better, we need to consider many other factors.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.