What Is The Ownership Structure Like For Cyrela Brazil Realty S.A. Empreendimentos e Participações (BVMF:CYRE3)?

Every investor in Cyrela Brazil Realty S.A. Empreendimentos e Participações (BVMF:CYRE3) should be aware of the most powerful shareholder groups. 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.

Cyrela Brazil Realty Empreendimentos e Participações has a market capitalization of R$11b, so we would expect some institutional investors to have noticed the stock. In the chart below, we can see that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about 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?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Cyrela Brazil Realty Empreendimentos e Participações. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Cyrela Brazil Realty Empreendimentos e Participações' historic earnings and revenue below, but keep in mind there's always more to the story.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Cyrela Brazil Realty Empreendimentos e Participações is not owned by hedge funds. Elie Horn is currently the company's largest shareholder with 26% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.5% and 5.7% of the stock.

We did some more digging and found that 6 of the top shareholders account for roughly 54% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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. Insiders own R$2.9b worth of shares in the R$11b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public holds a 21% 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Cyrela Brazil Realty Empreendimentos e Participações .

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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