Ambipar Participações e Empreendimentos S.A. (BVMF:AMBP3) CEO Tercio Junior, the company's largest shareholder sees 4.9% reduction in holdings value

Key Insights

• Insiders appear to have a vested interest in Ambipar Participações e Empreendimentos' growth, as seen by their sizeable ownership
• The top 2 shareholders own 74% of the company
• Institutions own 28% of Ambipar Participações e Empreendimentos

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To get a sense of who is truly in control of Ambipar Participações e Empreendimentos S.A. (BVMF:AMBP3), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 48% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to R$24b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's take a closer look to see what the different types of shareholders can tell us about Ambipar Participações e Empreendimentos.

View our latest analysis for Ambipar Participações e Empreendimentos

What Does The Institutional Ownership Tell Us About Ambipar Participações e Empreendimentos?

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.

Ambipar Participações e Empreendimentos already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Ambipar Participações e Empreendimentos, (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 Ambipar Participações e Empreendimentos. Looking at our data, we can see that the largest shareholder is the CEO Tercio Junior with 48% of shares outstanding. With 25% and 0.9% of the shares outstanding respectively, BTG Pactual Asset Management SA Distribuidora de Títulos e Valores Mobiliários and XP Gestao de Recursos Ltda. are the second and third largest shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 74% stake.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Ambipar Participações e Empreendimentos

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.

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 Ambipar Participações e Empreendimentos S.A.. It is very interesting to see that insiders have a meaningful R$11b stake in this R$24b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Ambipar Participações e Empreendimentos. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Ambipar Participações e Empreendimentos better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Ambipar Participações e Empreendimentos , and understanding them should be part of your investment process.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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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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.