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If you want to know who really controls AstraZeneca Pharma India Limited (NSE:ASTRAZEN), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. 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.
AstraZeneca Pharma India isn't enormous, but it's not particularly small either. It has a market capitalization of ₹63b, which means it would generally expect to see some institutions on the share registry. Taking a look at our data on the ownership groups (below), it's seems that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about ASTRAZEN.
See our latest analysis for AstraZeneca Pharma India
What Does The Institutional Ownership Tell Us About AstraZeneca Pharma India?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors own 5.3% of AstraZeneca Pharma India. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see AstraZeneca Pharma India's historic earnings and revenue, below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in AstraZeneca Pharma India. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of AstraZeneca Pharma India
The definition of an insider can 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.
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.