How Much Of Empreendimentos Pague Menos S.A. (BVMF:PGMN3) Do Insiders Own?

A look at the shareholders of Empreendimentos Pague Menos S.A. (BVMF:PGMN3) can tell us which group is most powerful. 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.

Empreendimentos Pague Menos is not a large company by global standards. It has a market capitalization of R$4.4b, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about Empreendimentos Pague Menos.

View our latest analysis for Empreendimentos Pague Menos

What Does The Institutional Ownership Tell Us About Empreendimentos Pague Menos?

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.

As you can see, institutional investors have a fair amount of stake in Empreendimentos Pague Menos. 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 Empreendimentos Pague Menos' historic earnings and revenue below, but keep in mind there's always more to the story.

Empreendimentos Pague Menos is not owned by hedge funds. The company's largest shareholder is Francisco Deusmar Queirós, with ownership of 44%. Meanwhile, the second and third largest shareholders, hold 13% and 6.4%, of the shares outstanding, respectively. Josué Alves, who is the third-largest shareholder, also happens to hold the title of Vice Chairman. Furthermore, CEO Mario Alves De Queirós is the owner of 2.7% of the company's shares.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 Empreendimentos Pague Menos

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 that insiders own more than half the Empreendimentos Pague Menos S.A. stock. This gives them a lot of power. So they have a R$2.8b stake in this R$4.4b business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public holds a 20% stake in Empreendimentos Pague Menos. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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 for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Empreendimentos Pague Menos , and understanding them should be part of your investment process.

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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