Individual investors are Yatra Online, Inc.'s (NASDAQ:YTRA) biggest owners and were rewarded after market cap rose by US$16m last week
Key Insights
Yatra Online's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
53% of the business is held by the top 8 shareholders
If you want to know who really controls Yatra Online, Inc. (NASDAQ:YTRA), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 28% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, individual investors were the biggest beneficiaries of last week’s 16% gain.
Let's delve deeper into each type of owner of Yatra Online, beginning with the chart below.
Check out our latest analysis for Yatra Online
What Does The Institutional Ownership Tell Us About Yatra Online?
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.
Yatra Online 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 Yatra Online's earnings history below. Of course, the future is what really matters.
Our data indicates that hedge funds own 28% of Yatra Online. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. MAK Capital One, LLC is currently the company's largest shareholder with 20% of shares outstanding. With 7.9% and 7.4% of the shares outstanding respectively, Altai Capital Management, L.P. and The 2020 Timothy J. Maguire Investment Trust are the second and third largest shareholders. In addition, we found that Dhruv Shringi, the CEO has 2.8% of the shares allocated to their name.
We did some more digging and found that 8 of the top shareholders account for roughly 53% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Yatra Online
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. 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.
It seems insiders own a significant proportion of Yatra Online, Inc.. It has a market capitalization of just US$114m, and insiders have US$13m worth of shares in their own names. 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
With a 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Yatra Online. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
We can see that Private Companies own 7.4%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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