Stock Analysis

What You Need To Know About EZTEC Empreendimentos e Participações S.A.'s (BVMF:EZTC3) Investor Composition

BOVESPA:EZTC3
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A look at the shareholders of EZTEC Empreendimentos e Participações S.A. (BVMF:EZTC3) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

EZTEC Empreendimentos e Participações has a market capitalization of R$7.2b, so we would expect some institutional investors to have noticed the stock. In the chart below, we can see that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about EZTEC Empreendimentos e Participações.

See our latest analysis for EZTEC Empreendimentos e Participações

ownership-breakdown
BOVESPA:EZTC3 Ownership Breakdown April 5th 2021

What Does The Institutional Ownership Tell Us About EZTEC 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 EZTEC 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. 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 EZTEC Empreendimentos e Participações, (below). Of course, keep in mind that there are other factors to consider, too.

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BOVESPA:EZTC3 Earnings and Revenue Growth April 5th 2021

Hedge funds don't have many shares in EZTEC Empreendimentos e Participações. The company's largest shareholder is Samir El Tayar, with ownership of 5.4%. For context, the second largest shareholder holds about 5.1% of the shares outstanding, followed by an ownership of 4.9% by the third-largest shareholder. Ernesto Zarzur, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. In addition, we found that Silvio Zarzur, the CEO has 4.7% of the shares allocated to their name.

After doing some more digging, we found that the top 11 have the combined ownership of 52% in the company, suggesting that no single shareholder has significant control over the company.

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 EZTEC Empreendimentos e Participações

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 EZTEC Empreendimentos e Participações S.A.. It has a market capitalization of just R$7.2b, and insiders have R$1.6b worth of shares in their own names. That's quite significant. 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 18% stake in EZTEC 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

It seems that Private Companies own 34%, of the EZTEC Empreendimentos e Participações stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for EZTEC Empreendimentos e Participações you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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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