Oncoclínicas do Brasil Serviços Médicos S.A.'s (BVMF:ONCO3) high institutional ownership speaks for itself as stock continues to impress, up 9.1% over last week

Key Insights

• Institutions' substantial holdings in Oncoclínicas do Brasil Serviços Médicos implies that they have significant influence over the company's share price
• 69% of the company is held by a single shareholder (Cultinvest Asset Management Ltda)
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of Oncoclínicas do Brasil Serviços Médicos S.A. (BVMF:ONCO3), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are institutions with 83% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And as as result, institutional investors reaped the most rewards after the company's stock price gained 9.1% last week. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 45%.

In the chart below, we zoom in on the different ownership groups of Oncoclínicas do Brasil Serviços Médicos.

Check out our latest analysis for Oncoclínicas do Brasil Serviços Médicos

What Does The Institutional Ownership Tell Us About Oncoclínicas do Brasil Serviços Médicos?

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.

Oncoclínicas do Brasil Serviços Médicos already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Oncoclínicas do Brasil Serviços Médicos, (below). Of course, keep in mind that there are other factors to consider, too.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Oncoclínicas do Brasil Serviços Médicos. The company's largest shareholder is Cultinvest Asset Management Ltda, with ownership of 69%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 3.7% and 2.9% of the shares outstanding respectively, Atmos Capital Gestao de Recursos Ltda and Bogari Gestão de Investimentos Ltda. are the second and third largest shareholders. Furthermore, CEO Bruno Ferrari is the owner of 2.9% of the company's shares.

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 Oncoclínicas do Brasil Serviços Médicos

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own some shares in Oncoclínicas do Brasil Serviços Médicos S.A.. As individuals, the insiders collectively own R$138m worth of the R$4.5b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 14% stake in the company, and hence can't easily be ignored. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Oncoclínicas do Brasil Serviços Médicos , and understanding them should be part of your investment process.

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.