Retail investors are Ambipar Participações e Empreendimentos S.A.'s (BVMF:AMBP3) biggest owners and were hit after market cap dropped R$197m

Key Insights

• Ambipar Participações e Empreendimentos' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 50% of the business is held by the top 15 shareholders
• 41% of Ambipar Participações e Empreendimentos is held by insiders

Every investor in Ambipar Participações e Empreendimentos S.A. (BVMF:AMBP3) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 49% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders who own 41% came under pressure after market cap dropped to R$1.4b last week,retail investors took the most losses.

In the chart below, we zoom in on the different ownership groups of Ambipar Participações e Empreendimentos.

See our latest analysis for Ambipar Participações e Empreendimentos

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

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.

As you can see, institutional investors have a fair amount of stake in Ambipar Participações e Empreendimentos. 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. 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 Ambipar Participações e Empreendimentos' earnings history below. Of course, the future is what really matters.

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 38% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.1% and 2.2% of the stock.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 15 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Ambipar Participações e Empreendimentos

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Ambipar Participações e Empreendimentos S.A.. Insiders have a R$590m stake in this R$1.4b business. 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 49% 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:

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. For example, we've discovered 3 warning signs for Ambipar Participações e Empreendimentos (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

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.