SLC Agrícola S.A.'s (BVMF:SLCE3) largest shareholders are private companies who were rewarded as market cap surged R$493m last week

Key Insights

• The considerable ownership by private companies in SLC Agrícola indicates that they collectively have a greater say in management and business strategy
• 50% of the company is held by a single shareholder (SLC Participações S.A.)
• 21% of SLC Agrícola is held by Institutions

Every investor in SLC Agrícola S.A. (BVMF:SLCE3) should be aware of the most powerful shareholder groups. We can see that private companies own the lion's share in the company with 50% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, private companies collectively scored the highest last week as the company hit R$7.7b market cap following a 6.6% gain in the stock.

In the chart below, we zoom in on the different ownership groups of SLC Agrícola.

View our latest analysis for SLC Agrícola

What Does The Institutional Ownership Tell Us About SLC Agrícola?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

SLC Agrícola already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 SLC Agrícola's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in SLC Agrícola. The company's largest shareholder is SLC Participações S.A., with ownership of 50%. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 5.4% of the shares outstanding, followed by an ownership of 3.1% by the third-largest shareholder.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of SLC Agrícola

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.

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.

Our most recent data indicates that insiders own some shares in SLC Agrícola S.A.. The insiders have a meaningful stake worth R$414m. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in SLC Agrícola. 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 Company Ownership

We can see that Private Companies own 50%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - SLC Agrícola has 3 warning signs we think you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.