Cyrela Brazil Realty S.A. Empreendimentos e Participações' (BVMF:CYRE3) institutional investors lost 3.9% over the past week but have profited from longer-term gains

Key Insights

• Significantly high institutional ownership implies Cyrela Brazil Realty Empreendimentos e Participações' stock price is sensitive to their trading actions
• The top 6 shareholders own 53% of the company
• Insiders own 23% of Cyrela Brazil Realty Empreendimentos e Participações

A look at the shareholders of Cyrela Brazil Realty S.A. Empreendimentos e Participações (BVMF:CYRE3) can tell us which group is most powerful. With 41% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

No shareholder likes losing money on their investments, especially institutional investors who saw their holdings drop 3.9% in value last week. However, the 90% one-year returns may have helped alleviate their overall losses. They should, however, be mindful of further losses in the future.

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

Check out our latest analysis for Cyrela Brazil Realty Empreendimentos e Participações

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

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.

We can see that Cyrela Brazil Realty Empreendimentos e Participações does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Cyrela Brazil Realty Empreendimentos e Participações, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Cyrela Brazil Realty Empreendimentos e Participações. Elie Horn is currently the largest shareholder, with 23% of shares outstanding. In comparison, the second and third largest shareholders hold about 10% and 5.8% of the stock.

We also observed that the top 6 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 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

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$2.0b stake in this R$8.7b 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

The general public, who are usually individual investors, hold a 29% stake in Cyrela Brazil Realty Empreendimentos e Participações. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 5.8%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Cyrela Brazil Realty Empreendimentos e Participações better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Cyrela Brazil Realty Empreendimentos e Participações 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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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.