Individual investors account for 33% of Smartfit Escola de Ginástica e Dança S.A.'s (BVMF:SMFT3) ownership, while private equity firms account for 33%

Key Insights

• The considerable ownership by individual investors in Smartfit Escola de Ginástica e Dança indicates that they collectively have a greater say in management and business strategy
• 54% of the business is held by the top 3 shareholders
• Institutional ownership in Smartfit Escola de Ginástica e Dança is 25%

A look at the shareholders of Smartfit Escola de Ginástica e Dança S.A. (BVMF:SMFT3) can tell us which group is most powerful. With 33% 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).

Private equity firms, on the other hand, account for 33% of the company's stockholders.

Let's delve deeper into each type of owner of Smartfit Escola de Ginástica e Dança, beginning with the chart below.

Check out our latest analysis for Smartfit Escola de Ginástica e Dança

What Does The Institutional Ownership Tell Us About Smartfit Escola de Ginástica e Dança?

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 Smartfit Escola de Ginástica e Dança 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 Smartfit Escola de Ginástica e Dança's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Smartfit Escola de Ginástica e Dança. The company's largest shareholder is Patria Investimentos Ltda, with ownership of 33%. With 12% and 9.0% of the shares outstanding respectively, Canada Pension Plan Investment Board and Novastar Investment Pte. Ltd are the second and third largest shareholders.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 54% stake.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Smartfit Escola de Ginástica e Dança

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.

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 33% stake in Smartfit Escola de Ginástica e Dança. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Equity Ownership

Private equity firms hold a 33% stake in Smartfit Escola de Ginástica e Dança. This suggests they can be influential in key policy decisions. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

It seems that Private Companies own 9.0%, of the Smartfit Escola de Ginástica e Dança stock. 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:

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 Smartfit Escola de Ginástica e Dança 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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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.