Três Tentos Agroindustrial S/A (BVMF:TTEN3) surges 6.2%; private companies who own 42% shares profited along with insiders

Key Insights

• Três Tentos Agroindustrial S/A's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 5 shareholders own 55% of the company
• Insider ownership in Três Tentos Agroindustrial S/A is 35%

A look at the shareholders of Três Tentos Agroindustrial S/A (BVMF:TTEN3) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 42% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 6.2% increase in the stock price last week, private companies profited the most, but insiders who own 35% stock also stood to gain from the increase.

In the chart below, we zoom in on the different ownership groups of Três Tentos Agroindustrial S/A.

Check out our latest analysis for Três Tentos Agroindustrial S/A

What Does The Institutional Ownership Tell Us About Três Tentos Agroindustrial S/A?

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.

Três Tentos Agroindustrial S/A 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 Três Tentos Agroindustrial S/A's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Três Tentos Agroindustrial S/A. The company's largest shareholder is Ald Holding E Participações Ltda., with ownership of 14%. With 14% and 9.6% of the shares outstanding respectively, Jm Participações Ltda. and Maria Dumoncel Hoff are the second and third largest shareholders. Furthermore, CEO Luiz Dumoncel is the owner of 8.6% of the company's shares.

On looking further, we found that 55% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Três Tentos Agroindustrial S/A

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 information suggests that insiders maintain a significant holding in Três Tentos Agroindustrial S/A. Insiders have a R$1.8b stake in this R$5.2b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Três Tentos Agroindustrial S/A. 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 Company Ownership

It seems that Private Companies own 42%, of the Três Tentos Agroindustrial S/A stock. 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.

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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com