【why rolex submariner is so expensive】Do Insiders Own Shares In MIC Electronics Limited (NSE:MIC)?

Thewhy rolex submariner is so expensive big shareholder groups in MIC Electronics Limited (

NSE:MIC

) have power over the company. 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.’

MIC Electronics is a smaller company with a market capitalization of ₹339m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have not yet purchased much of the company. Let’s take a closer look to see what the different types of shareholder can tell us about MIC.

See our latest analysis for MIC Electronics

NSEI:MIC Ownership Summary January 3rd 19

What Does The Institutional Ownership Tell Us About MIC Electronics?

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.

Less than 5% of MIC Electronics is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it’s the future that counts most.

NSEI:MIC Income Statement Export January 3rd 19

Hedge funds don’t have many shares in MIC Electronics. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of MIC Electronics

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.

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.

It seems insiders own a significant proportion of MIC Electronics Limited. Insiders have a ₹83m stake in this ₹339m business. It is great to see insiders so invested in the business. It might be worth checking

if those insiders have been buying recently.

Story continues

General Public Ownership

The general public, who are mostly retail investors, collectively hold 57% of MIC Electronics shares. With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.

Private Company Ownership

We can see that Private Companies own 14%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

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

.

If you would prefer check out another company — one with potentially superior financials — then do not miss this

free

list of interesting companies, backed by strong financial data.

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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at

[email protected]

.

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