Alper Consultoria e Corretora de Seguros S.A.'s (BVMF:APER3) large institutional owners must be happy as stock continues to impress, up 11% over the past week

Key Insights

• Significantly high institutional ownership implies Alper Consultoria e Corretora de Seguros' stock price is sensitive to their trading actions
• 52% of the business is held by the top 4 shareholders
• Insiders own 19% of Alper Consultoria e Corretora de Seguros

To get a sense of who is truly in control of Alper Consultoria e Corretora de Seguros S.A. (BVMF:APER3), it is important to understand the ownership structure of the business. With 38% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, institutional investors ended up benefitting the most after the company hit R$669m in market cap. One-year return to shareholders is currently 32% and last week’s gain was the icing on the cake.

Let's take a closer look to see what the different types of shareholders can tell us about Alper Consultoria e Corretora de Seguros.

See our latest analysis for Alper Consultoria e Corretora de Seguros

What Does The Institutional Ownership Tell Us About Alper Consultoria e Corretora de Seguros?

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.

Alper Consultoria e Corretora de Seguros already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Alper Consultoria e Corretora de Seguros' earnings history below. Of course, the future is what really matters.

Alper Consultoria e Corretora de Seguros is not owned by hedge funds. The company's largest shareholder is Bravos Gestao de Recursos Ltda, with ownership of 17%. In comparison, the second and third largest shareholders hold about 15% and 11% of the stock.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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 Alper Consultoria e Corretora de Seguros

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 a reasonable proportion of Alper Consultoria e Corretora de Seguros S.A.. It has a market capitalization of just R$669m, and insiders have R$129m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 13% stake in Alper Consultoria e Corretora de Seguros. 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 Equity Ownership

With an ownership of 26%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

It seems that Private Companies own 4.0%, of the Alper Consultoria e Corretora de Seguros 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. For instance, we've identified 2 warning signs for Alper Consultoria e Corretora de Seguros 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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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.