Both individual investors who control a good portion of CVC Brasil Operadora e Agência de Viagens S.A. (BVMF:CVCB3) along with institutions must be dismayed after last week's 11% decrease

Key Insights

• Significant control over CVC Brasil Operadora e Agência de Viagens by individual investors implies that the general public has more power to influence management and governance-related decisions
• A total of 25 investors have a majority stake in the company with 45% ownership
• Institutions own 30% of CVC Brasil Operadora e Agência de Viagens

Every investor in CVC Brasil Operadora e Agência de Viagens S.A. (BVMF:CVCB3) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 54% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While institutions, who own 30% shares weren’t spared from last week’s R$189m market cap drop, individual investors as a group suffered the maximum losses

In the chart below, we zoom in on the different ownership groups of CVC Brasil Operadora e Agência de Viagens.

View our latest analysis for CVC Brasil Operadora e Agência de Viagens

What Does The Institutional Ownership Tell Us About CVC Brasil Operadora e Agência de Viagens?

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 CVC Brasil Operadora e Agência de Viagens. 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 CVC Brasil Operadora e Agência de Viagens, (below). Of course, keep in mind that there are other factors to consider, too.

Our data indicates that hedge funds own 5.3% of CVC Brasil Operadora e Agência de Viagens. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Looking at our data, we can see that the largest shareholder is Mar Capital Gestao de Recursos LTDA with 10% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.8% and 5.3% of the stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of CVC Brasil Operadora e Agência de Viagens

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

We note our data does not show any board members holding shares, personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 54% stake in CVC Brasil Operadora e Agência de Viagens, suggesting it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

Our data indicates that Private Companies hold 10%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand CVC Brasil Operadora e Agência de Viagens better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with CVC Brasil Operadora e Agência de Viagens (at least 2 which are a bit concerning) , and understanding them should be part of your investment process.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.