What Percentage Of Ambipar Participações e Empreendimentos S.A. (BVMF:AMBP3) Shares Do Insiders Own?

If you want to know who really controls Ambipar Participações e Empreendimentos S.A. (BVMF:AMBP3), then you'll have to look at the makeup of its share registry. 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.

Ambipar Participações e Empreendimentos is a smaller company with a market capitalization of R$2.6b, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Ambipar Participações e Empreendimentos.

Check out 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.

We can see that Ambipar Participações e Empreendimentos does have institutional investors; and they hold a good portion of the company's stock. 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 Ambipar Participações e Empreendimentos' earnings history below. Of course, the future is what really matters.

Ambipar Participações e Empreendimentos is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Ambipar Participações e Empreendimentos' case, its President, Tércio Borlenghi Junior, is the largest shareholder, holding 56% of shares outstanding. With 5.4% and 3.7% of the shares outstanding respectively, Truxt Investimentos Ltda and Daniela Borlenghi Iglesias Balseiro are the second and third largest shareholders.

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 an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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$1.7b stake in this R$2.6b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 26% ownership, the general public have some degree of sway over Ambipar Participações e Empreendimentos. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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 1 warning sign for Ambipar Participações e Empreendimentos 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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