What Kind Of Shareholders Hold The Majority In Ambipar Participações e Empreendimentos S.A.'s (BVMF:AMBP3) Shares?

A look at the shareholders of Ambipar Participações e Empreendimentos S.A. (BVMF:AMBP3) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

With a market capitalization of R$3.1b, Ambipar Participações e Empreendimentos is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about 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.

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.

Hedge funds don't have many shares in Ambipar Participações e Empreendimentos. Our data suggests that Tércio Borlenghi Junior, who is also the company's President, holds the most number of shares at 56%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. Truxt Investimentos Ltda is the second largest shareholder owning 5.4% of common stock, and Cristhianne Borlenghi Donadio holds about 3.7% of the company stock.

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 Ambipar Participações e Empreendimentos

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 information suggests that insiders own more than half of Ambipar Participações e Empreendimentos S.A.. This gives them effective control of the company. So they have a R$2.1b stake in this R$3.1b business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public holds a 27% stake in 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. Case in point: We've spotted 1 warning sign for Ambipar Participações e Empreendimentos you should be aware of.

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.

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