Stock Analysis

Institutions along with public companies who hold considerable shares inOdontoprev S.A. (BVMF:ODPV3) come under pressure; lose 6.5% of holdings value

Published
BOVESPA:ODPV3

Key Insights

  • Odontoprev's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
  • The largest shareholder of the company is Banco Bradesco S.A. with a 53% stake
  • Institutional ownership in Odontoprev is 33%

Every investor in Odontoprev S.A. (BVMF:ODPV3) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 53% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While institutions, who own 33% shares weren’t spared from last week’s R$470m market cap drop, public companies as a group suffered the maximum losses

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

View our latest analysis for Odontoprev

BOVESPA:ODPV3 Ownership Breakdown February 27th 2024

What Does The Institutional Ownership Tell Us About Odontoprev?

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.

We can see that Odontoprev does have institutional investors; and they hold a good portion of the company's stock. 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 Odontoprev's earnings history below. Of course, the future is what really matters.

BOVESPA:ODPV3 Earnings and Revenue Growth February 27th 2024

Hedge funds don't have many shares in Odontoprev. Banco Bradesco S.A. is currently the company's largest shareholder with 53% of shares outstanding. This implies that they have majority interest control of the future of the company. With 5.3% and 4.9% of the shares outstanding respectively, Scotia Asset Management L.P. and Invesco Ltd. are the second and third largest shareholders.

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 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 Odontoprev

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 data cannot confirm that board members are holding shares personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public-- including retail investors -- own 14% 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.

Public Company Ownership

We can see that public companies hold 53% of the Odontoprev shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Odontoprev better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Odontoprev .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.