Institutions profited after Companhia Brasileira De Distribuicao's (BVMF:PCAR3) market cap rose R$167m last week but individual investors profited the most

Key Insights

• Companhia Brasileira De Distribuicao's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 50% of the business is held by the top 21 shareholders
• Institutional ownership in Companhia Brasileira De Distribuicao is 29%

A look at the shareholders of Companhia Brasileira De Distribuicao (BVMF:PCAR3) can tell us which group is most powerful. With 48% stake, individual investors 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).

Individual investors gained the most after market cap touched R$1.4b last week, while institutions who own 29% also benefitted.

Let's delve deeper into each type of owner of Companhia Brasileira De Distribuicao, beginning with the chart below.

View our latest analysis for Companhia Brasileira De Distribuicao

What Does The Institutional Ownership Tell Us About Companhia Brasileira De Distribuicao?

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.

We can see that Companhia Brasileira De Distribuicao does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Companhia Brasileira De Distribuicao's historic earnings and revenue below, but keep in mind there's always more to the story.

Companhia Brasileira De Distribuicao is not owned by hedge funds. The company's largest shareholder is Euris SAS, with ownership of 23%. Morgan Stanley, Investment Banking and Brokerage Investments is the second largest shareholder owning 11% of common stock, and Teachers Insurance and Annuity Association-College Retirement Equities Fund holds about 3.0% of the company stock.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 21 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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 Companhia Brasileira De Distribuicao

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.

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.

Our data suggests that insiders own under 1% of Companhia Brasileira De Distribuicao in their own names. However, it's possible that insiders might have an indirect interest through a more complex structure. It seems the board members have no more than R$2.8 worth of shares in the R$1.4b company. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 48% stake in the company, and hence can't easily be ignored. 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.

Private Company Ownership

We can see that Private Companies own 23%, of the shares on issue. 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 Companhia Brasileira De Distribuicao better, we need to consider many other factors. For instance, we've identified 3 warning signs for Companhia Brasileira De Distribuicao that you should be aware of.

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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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.