How Much Of Profarma Distribuidora de Produtos Farmacêuticos S.A. (BVMF:PFRM3) Do Institutions Own?

If you want to know who really controls Profarma Distribuidora de Produtos Farmacêuticos S.A. (BVMF:PFRM3), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.

With a market capitalization of R$700m, Profarma Distribuidora de Produtos Farmacêuticos is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Profarma Distribuidora de Produtos Farmacêuticos.

Check out our latest analysis for Profarma Distribuidora de Produtos Farmacêuticos

What Does The Institutional Ownership Tell Us About Profarma Distribuidora de Produtos Farmacêuticos?

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.

As you can see, institutional investors have a fair amount of stake in Profarma Distribuidora de Produtos Farmacêuticos. 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. 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 Profarma Distribuidora de Produtos Farmacêuticos, (below). Of course, keep in mind that there are other factors to consider, too.

Profarma Distribuidora de Produtos Farmacêuticos is not owned by hedge funds. Our data shows that AmerisourceBergen Corporation is the largest shareholder with 34% of shares outstanding. BMK Participações S.A. is the second largest shareholder owning 26% of common stock, and CM Capital Markets DTVM LTDA holds about 5.2% of the company stock. Additionally, the company's CEO Sammy Birmarcker directly holds 1.1% of the total shares outstanding.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 60% stake.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Profarma Distribuidora de Produtos Farmacêuticos

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own some shares in Profarma Distribuidora de Produtos Farmacêuticos S.A.. As individuals, the insiders collectively own R$17m worth of the R$700m company. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

The general public holds a 19% stake in Profarma Distribuidora de Produtos Farmacêuticos. 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 26%, 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.

Public Company Ownership

It appears to us that public companies own 34% of Profarma Distribuidora de Produtos Farmacêuticos. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 2 warning signs for Profarma Distribuidora de Produtos Farmacêuticos (1 shouldn't be ignored) that you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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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