Is CVC Brasil Operadora e Agência de Viagens S.A. (BVMF:CVCB3) Popular Amongst Institutions?

By
Simply Wall St
Published
July 20, 2020

If you want to know who really controls CVC Brasil Operadora e Agência de Viagens S.A. (BVMF:CVCB3), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

CVC Brasil Operadora e Agência de Viagens is not a large company by global standards. It has a market capitalization of R$3.2b, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about CVC Brasil Operadora e Agência de Viagens.

Check out our latest analysis for CVC Brasil Operadora e Agência de Viagens

BOVESPA:CVCB3 Ownership Breakdown July 20th 2020

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

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 CVC Brasil Operadora e Agência de Viagens does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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.

BOVESPA:CVCB3 Earnings and Revenue Growth July 20th 2020

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. CVC Brasil Operadora e Agência de Viagens is not owned by hedge funds. Our data shows that Opportunity Asset Administradora De Recursos De Terceiros Ltda is the largest shareholder with 10% of shares outstanding. With 5.2% and 5.0% of the shares outstanding respectively, Equitas Administração De Fundos De Investimento Lt and Seven Invest Gestao De Recursos LTDA are the second and third largest shareholders.

After doing some more digging, we found that the top 14 have the combined ownership of 51% in the company, suggesting that no one share holder has significant control over the company.

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 CVC Brasil Operadora e Agência de Viagens

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

With a 17% ownership, the general public have some degree of sway over CVCB3. 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

Our data indicates that Private Companies hold 10%, of the company's shares. 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 CVC Brasil Operadora e Agência de Viagens better, we need to consider many other factors. For example, we've discovered 2 warning signs for CVC Brasil Operadora e Agência de Viagens (1 is a bit concerning!) that you should be aware of before investing here.

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.
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