BB Seguridade Participações S.A.'s (BVMF:BBSE3) top owners are public companies with 66% stake, while 19% is held by individual investors

Key Insights

• Significant control over BB Seguridade Participações by public companies implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is Banco do Brasil S.A. with a 66% stake
• Institutions own 14% of BB Seguridade Participações

To get a sense of who is truly in control of BB Seguridade Participações S.A. (BVMF:BBSE3), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 66% to be precise, is public companies. Put another way, the group faces the maximum upside potential (or downside risk).

Individual investors, on the other hand, account for 19% of the company's stockholders.

Let's take a closer look to see what the different types of shareholders can tell us about BB Seguridade Participações.

View our latest analysis for BB Seguridade Participações

What Does The Institutional Ownership Tell Us About BB Seguridade Participações?

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 BB Seguridade Participações. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see BB Seguridade Participações' historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in BB Seguridade Participações. The company's largest shareholder is Banco do Brasil S.A., with ownership of 66%. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 2.0% of the shares outstanding, followed by an ownership of 1.4% by the third-largest shareholder.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of BB Seguridade Participações

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

Our data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public, who are usually individual investors, hold a 19% stake in BB Seguridade Participações. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

Public companies currently own 66% of BB Seguridade Participações stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with BB Seguridade Participações (including 1 which is a bit unpleasant) .

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.