A look at the shareholders of Innovana Thinklabs Limited (NSE:INNOVANA) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.’
With a market capitalization of ₹1.5b, Innovana Thinklabs is a small cap stock, so it might not be well known by many institutional investors. In the chart below below, we can see that institutional investors have not yet purchased much of the company. Let’s delve deeper into each type of owner, to discover more about INNOVANA.
Check out our latest analysis for Innovana Thinklabs
What Does The Lack Of Institutional Ownership Tell Us About Innovana Thinklabs?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it’s unusual to see larger companies without any institutional investors.
There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it’s always possible that professional investors are avoiding a company because they don’t think it’s the best place for their money. Innovana Thinklabs’s earnings and revenue track record (below) may not be compelling to institutional investors — or they simply might not have looked at the business closely.
Innovana Thinklabs is not owned by hedge funds. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Innovana Thinklabs
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. 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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that insiders own more than half of Innovana Thinklabs Limited. This gives them effective control of the company. Given it has a market cap of ₹1.5b, that means they have ₹1.1b worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.