What Kind Of Investors Own Most Of Financeira Alfa S.A. - Crédito, Financiamento e Investimentos (BVMF:CRIV3)?

A look at the shareholders of Financeira Alfa S.A. - Crédito, Financiamento e Investimentos (BVMF:CRIV3) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership.

Financeira Alfa - Crédito Financiamento e Investimentos is a smaller company with a market capitalization of R$647m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Financeira Alfa - Crédito Financiamento e Investimentos.

Check out our latest analysis for Financeira Alfa - Crédito Financiamento e Investimentos

What Does The Institutional Ownership Tell Us About Financeira Alfa - Crédito Financiamento e Investimentos?

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.

As you can see, institutional investors have a fair amount of stake in Financeira Alfa - Crédito Financiamento e Investimentos. 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 Financeira Alfa - Crédito Financiamento e Investimentos' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Financeira Alfa - Crédito Financiamento e Investimentos. Administradora Fortaleza Ltda. is currently the company's largest shareholder with 34% of shares outstanding. For context, the second largest shareholder holds about 25% of the shares outstanding, followed by an ownership of 17% by the third-largest shareholder.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Financeira Alfa - Crédito Financiamento e Investimentos

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. 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.

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.

I can report that insiders do own shares in Financeira Alfa S.A. - Crédito, Financiamento e Investimentos. It has a market capitalization of just R$647m, and insiders have R$26m worth of shares, in their own names. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

The general public, with a 18% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 59%, of the Financeira Alfa - Crédito Financiamento e Investimentos 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Financeira Alfa - Crédito Financiamento e Investimentos better, we need to consider many other factors.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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