After losing 79% in the past year, Diagnósticos da América S.A. (BVMF:DASA3) institutional owners must be relieved by the recent gain

Key Insights

• Institutions' substantial holdings in Diagnósticos da América implies that they have significant influence over the company's share price
• Oliveira Trust Servicer S.A. owns 54% of the company
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

A look at the shareholders of Diagnósticos da América S.A. (BVMF:DASA3) can tell us which group is most powerful. With 80% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Institutional investors would appreciate the 17% increase in share price last week, given their one-year losses have totalled a disappointing 79%.

Let's delve deeper into each type of owner of Diagnósticos da América, beginning with the chart below.

Check out our latest analysis for Diagnósticos da América

What Does The Institutional Ownership Tell Us About Diagnósticos da América?

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.

As you can see, institutional investors have a fair amount of stake in Diagnósticos da América. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Diagnósticos da América's earnings history below. Of course, the future is what really matters.

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Diagnósticos da América is not owned by hedge funds. Our data shows that Oliveira Trust Servicer S.A. is the largest shareholder with 54% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 20% and 4.8% of the shares outstanding respectively, BTG Pactual Asset Management SA Distribuidora de Títulos e Valores Mobiliários and Dulce De Godoy Bueno are the second and third largest shareholders. Dulce De Godoy Bueno, who is the third-largest shareholder, also happens to hold the title of Co-Chairman of the Board.

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 Diagnósticos da América

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.

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 can see that insiders own shares in Diagnósticos da América S.A.. It has a market capitalization of just R$1.4b, and insiders have R$143m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 11% stake in the company, and hence can't 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Diagnósticos da América better, we need to consider many other factors. Be aware that Diagnósticos da América is showing 1 warning sign in our investment analysis , you should know about...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.