In This Article:
The big shareholder groups in Lemon Tree Hotels Limited (NSE:LEMONTREE) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. 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.’
Lemon Tree Hotels has a market capitalization of ₹58.82b, 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 LEMONTREE.
See our latest analysis for Lemon Tree Hotels
What Does The Institutional Ownership Tell Us About Lemon Tree Hotels?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Lemon Tree Hotels does have institutional investors; and they hold 28.1% 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 Lemon Tree Hotels, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don’t have many shares in Lemon Tree Hotels. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Lemon Tree Hotels
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
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.
Shareholders would probably be interested to learn that insiders own shares in Lemon Tree Hotels Limited. It has a market capitalization of just ₹58.82b, and insiders have ₹3.89b worth of shares, in their own names. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.