With 57% ownership of the shares, B3 S.A. - Brasil, Bolsa, Balcão (BVMF:B3SA3) is heavily dominated by institutional owners

Key Insights

• Institutions' substantial holdings in B3 - Brasil Bolsa Balcão implies that they have significant influence over the company's share price
• The top 25 shareholders own 47% of the company
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

Every investor in B3 S.A. - Brasil, Bolsa, Balcão (BVMF:B3SA3) should be aware of the most powerful shareholder groups. With 57% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.

In the chart below, we zoom in on the different ownership groups of B3 - Brasil Bolsa Balcão.

View our latest analysis for B3 - Brasil Bolsa Balcão

What Does The Institutional Ownership Tell Us About B3 - Brasil Bolsa Balcão?

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.

B3 - Brasil Bolsa Balcão already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at B3 - Brasil Bolsa Balcão's earnings history below. Of course, the future is what really matters.

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in B3 - Brasil Bolsa Balcão. Capital Research and Management Company is currently the largest shareholder, with 12% of shares outstanding. With 5.7% and 5.2% of the shares outstanding respectively, Baillie Gifford & Co. and BlackRock, Inc. are the second and third largest shareholders.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 B3 - Brasil Bolsa Balcão

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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

The general public, who are usually individual investors, hold a 43% stake in B3 - Brasil Bolsa Balcão. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 1 warning sign for B3 - Brasil Bolsa Balcão that you should be aware of before investing here.

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.