Individual investors in Ascencio SCA (EBR:ASC) are its biggest bettors, and their bets paid off as stock gained 11% last week

October 01, 2022
  •  Updated
November 14, 2022
ENXTBR:ASC
Source: Shutterstock

To get a sense of who is truly in control of Ascencio SCA (EBR:ASC), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual investors with 60% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, individual investors were the biggest beneficiaries of last week’s 11% gain.

Let's delve deeper into each type of owner of Ascencio, beginning with the chart below.

However if you'd rather see where the opportunities and risks are within ASC's industry, you can check out our analysis on the BE REITs industry.

ownership-breakdown
ENXTBR:ASC Ownership Breakdown October 1st 2022

What Does The Institutional Ownership Tell Us About Ascencio?

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.

Ascencio already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Ascencio's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ENXTBR:ASC Earnings and Revenue Growth October 1st 2022

Ascencio is not owned by hedge funds. The company's largest shareholder is AG Finance SA, with ownership of 10.0%. Multi Asset Global Investments Co., Ltd. is the second largest shareholder owning 10.0% of common stock, and Fidagh SA holds about 9.5% of the company stock.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Ascencio

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Shareholders would probably be interested to learn that insiders own shares in Ascencio SCA. It has a market capitalization of just €334m, and insiders have €20m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 60% of Ascencio shares. With this amount 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 vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

Our data indicates that Private Companies hold 19%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private 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. Take risks for example - Ascencio has 2 warning signs (and 1 which is significant) we think you should know about.

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.

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