The recent 6.4% gain must have brightened CEO Bhanu Chopra's week, RateGain Travel Technologies Limited's (NSE:RATEGAIN) most bullish insider
Key Insights
- Insiders appear to have a vested interest in RateGain Travel Technologies' growth, as seen by their sizeable ownership
- 54% of the business is held by the top 3 shareholders
- Institutional ownership in RateGain Travel Technologies is 35%
To get a sense of who is truly in control of RateGain Travel Technologies Limited (NSE:RATEGAIN), 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 48% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Clearly, insiders benefitted the most after the company's market cap rose by ₹4.9b last week.
Let's delve deeper into each type of owner of RateGain Travel Technologies, beginning with the chart below.
Check out our latest analysis for RateGain Travel Technologies
What Does The Institutional Ownership Tell Us About RateGain Travel Technologies?
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.
RateGain Travel Technologies already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at RateGain Travel Technologies' earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in RateGain Travel Technologies. With a 38% stake, CEO Bhanu Chopra is the largest shareholder. With 9.4% and 6.4% of the shares outstanding respectively, Megha Chopra and Plutus Wealth Management LLP are the second and third largest shareholders. Interestingly, the second-largest shareholder, Megha Chopra is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.
A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 54% stake.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of RateGain Travel Technologies
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Our most recent data indicates that insiders own a reasonable proportion of RateGain Travel Technologies Limited. Insiders own ₹40b worth of shares in the ₹82b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 15% stake in RateGain Travel Technologies. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand RateGain Travel Technologies better, we need to consider many other factors.
I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.