Every investor in Cyrela Brazil Realty S.A. Empreendimentos e Participações (BVMF:CYRE3) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.
With a market capitalization of R$5.7b, Cyrela Brazil Realty Empreendimentos e Participações is a decent size, so it is probably on the radar of institutional investors. 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.
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.
Cyrela Brazil Realty Empreendimentos e Participações already has institutions on the share registry. Indeed, they own 48% of 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. 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’s earnings history, below. Of course, the future is what really matters.
Cyrela Brazil Realty Empreendimentos e Participações is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Elie Horn with 26% of shares outstanding. The second and third largest shareholders are Itau Unibanco S.A., Asset Management Arm and Capital Research and Management Company, each holding around 5.1% of the shares outstanding.
On further inspection, we found that 52% of the share register is owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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 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 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.
It seems insiders own a significant proportion of Cyrela Brazil Realty S.A. Empreendimentos e Participações. Insiders own R$1.5b worth of shares in the R$5.7b company. That’s quite meaningful. 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 holds a 25% stake in CYRE3. 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.
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 3 warning signs we think 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. 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. Thank you for reading.