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Every investor in Infibeam Avenues Limited (NSE:INFIBEAM) should be aware of the most powerful shareholder groups. 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.’
Infibeam Avenues has a market capitalization of ₹120.31b, so we would expect some institutional investors to have noticed the stock. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let’s take a closer look to see what the different types of shareholder can tell us about INFIBEAM.
View our latest analysis for Infibeam Avenues
What Does The Institutional Ownership Tell Us About Infibeam Avenues?
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.
We can see that Infibeam Avenues does have institutional investors; and they hold 13.2% of the stock. 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. 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 Infibeam Avenues, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don’t have a meaningful investment in Infibeam Avenues. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Infibeam Avenues
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.
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 the majority of Infibeam Avenues Limited. This means they can collectively make decisions for the company. That means insiders have a very meaningful ₹71.47b stake in this ₹120.31b business. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.