Retail investors in Smartfit Escola de Ginástica e Dança S.A. (BVMF:SMFT3) are its biggest bettors, and their bets paid off as stock gained 5.3% last week

Key Insights

• The considerable ownership by retail 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
• Institutions own 21% of Smartfit Escola de Ginástica e Dança

A look at the shareholders of Smartfit Escola de Ginástica e Dança S.A. (BVMF:SMFT3) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 37% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, retail investors benefitted the most after the company's market cap rose by R$639m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Smartfit Escola de Ginástica e Dança.

View our latest analysis for Smartfit Escola de Ginástica e Dança

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

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Smartfit Escola de Ginástica e Dança. 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. 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 Smartfit Escola de Ginástica e Dança, (below). Of course, keep in mind that there are other factors to consider, too.

Smartfit Escola de Ginástica e Dança is not owned by hedge funds. Patria Investimentos Ltda is currently the largest shareholder, with 33% of shares outstanding. 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.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of 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 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. 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

With a 37% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Smartfit Escola de Ginástica e Dança. 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 Equity Ownership

With an ownership of 33%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. 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

We can see that Private Companies own 9.0%, 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 Smartfit Escola de Ginástica e Dança better, we need to consider many other factors.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

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.