Every investor in Pearl Global Industries Limited (NSE:PGIL) should know the most powerful shareholder groups. We can see that individual insiders hold the lion’s share of the company with 79% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).
Clearly, insiders benefited the most after the company’s market capitalization increased by ₹1.3 billion last week.
Let’s dive deeper into each type of owner in Pearl Global Industries, starting with the table below.
See our latest analysis for Pearl Global Industries
What does institutional ownership tell us about Pearl Global Industries?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.
We can see that Pearl Global Industries has institutional investors; and they own a good part of the shares of the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. It is therefore worth checking out the earnings history of Pearl Global Industries below. Of course, the future is what really matters.
Pearl Global Industries is not a hedge fund. With a 32% stake, CEO Pulkit Seth is the largest shareholder. Meanwhile, the second and third largest shareholders hold 20% and 13% of the outstanding shares respectively. Interestingly, the third-largest shareholder, Deepak Seth, is also chairman of the board, indicating strong insider ownership among the company’s major shareholders.
After digging a little deeper, we found that the 2 major shareholders collectively control more than half of the company’s shares, implying that they have considerable power to influence company decisions.
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 a stock’s expected performance. Our information suggests there is no analyst coverage of the stock, so it is likely little known.
Insider owned by Pearl Global Industries
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.
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 own more than half of Pearl Global Industries Limited. This gives them effective control of the business. This means they own $9.6bn worth of shares in the £12bn company. It is quite significant. Most would say this is a positive, showing strong alignment with shareholders. You can click here to see if these insiders have been buying or selling.
General public property
With a 13% stake, the general public, consisting mainly of individual investors, has some influence over Pearl Global Industries. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other large shareholders.
Next steps:
It is always useful to think about the different groups that own shares in a company. But to better understand Pearl Global Industries, we need to consider many other factors. Like risks, for example. Every business has them, and we’ve spotted 4 warning signs for Pearl Global Industries (2 of which don’t really suit us!) that you should know.
If you’d rather check out 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 using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.