A look at the shareholders of ICICI Prudential Life Insurance Company Limited (NSE:ICICIPRULI) can tell us which group is most powerful. With 73% stake, public companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And institutions on the other hand have a 15% ownership in the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.
In the chart below, we zoom in on the different ownership groups of ICICI Prudential Life Insurance.
Check out our latest analysis for ICICI Prudential Life Insurance
What Does The Institutional Ownership Tell Us About ICICI Prudential Life Insurance?
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.
As you can see, institutional investors have a fair amount of stake in ICICI Prudential Life Insurance. This suggests some credibility among 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 ICICI Prudential Life Insurance, (below). Of course, keep in mind that there are other factors to consider, too.
ICICI Prudential Life Insurance is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is GIC Pte. ltd. with 1.0% of outstanding shares. For context, the second largest shareholder holds about 0.5% of the outstanding shares, followed by an ownership of 0.3% by the third-largest shareholder.
Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, meaning that the company’s shares are widely disseminated and there is no dominant shareholder.
Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be achieved by studying analyst feelings. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of ICICI Prudential Life Insurance
The definition of an insider may differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
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.
Our data suggests that insiders own under 1% of ICICI Prudential Life Insurance Company Limited in their own names. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own ₹471m of stock. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 11% stake in ICICI Prudential Life Insurance. While this size of ownership may not be enough to sway a policy decision in their favor, they can still make a collective impact on company policies.
Public Company Ownership
Public companies currently own 73% of ICICI Prudential Life Insurance stock. We can’t be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We’ve spotted 2 warning signs for ICICI Prudential Life Insurance you should be aware of.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.