Cyrela Brazil Realty S.A. Empreendimentos e Participações' (BVMF:CYRE3) high institutional ownership speaks for itself as stock continues to impress, up 6.5% over last week

Key Insights

• Given the large stake in the stock by institutions, Cyrela Brazil Realty Empreendimentos e Participações' stock price might be vulnerable to their trading decisions
• 50% of the business is held by the top 9 shareholders
• Insider ownership in Cyrela Brazil Realty Empreendimentos e Participações is 24%

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A look at the shareholders of Cyrela Brazil Realty S.A. Empreendimentos e Participações (BVMF:CYRE3) can tell us which group is most powerful. The group holding the most number of shares in the company, around 36% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Last week’s 6.5% gain means that institutional investors were on the positive end of the spectrum even as the company has shown strong longer-term trends. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 54%.

Let's delve deeper into each type of owner of Cyrela Brazil Realty Empreendimentos e Participações, beginning with the chart below.

See our latest analysis for Cyrela Brazil Realty Empreendimentos e Participações

What Does The Institutional Ownership Tell Us About Cyrela Brazil Realty Empreendimentos e Participações?

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.

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

Cyrela Brazil Realty Empreendimentos e Participações is not owned by hedge funds. Our data shows that Elie Horn is the largest shareholder with 24% of shares outstanding. With 6.0% and 5.4% of the shares outstanding respectively, Erirenor Sociedad Anonima and BlackRock, Inc. are the second and third largest shareholders.

We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Cyrela Brazil Realty Empreendimentos e Participações

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

It seems insiders own a significant proportion of Cyrela Brazil Realty S.A. Empreendimentos e Participações. It is very interesting to see that insiders have a meaningful R$2.8b stake in this R$12b 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 34% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Cyrela Brazil Realty Empreendimentos e Participações. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 5.9%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Cyrela Brazil Realty Empreendimentos e Participações has 1 warning sign we think you should be aware of.

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.