While individual investors own 22% of BB Seguridade Participações S.A. (BVMF:BBSE3), public companies are its largest shareholders with 67% ownership

Key Insights

• The considerable ownership by public companies in BB Seguridade Participações indicates that they collectively have a greater say in management and business strategy
• 67% of the company is held by a single shareholder (Banco do Brasil S.A.)
• 11% of BB Seguridade Participações is held by Institutions

A look at the shareholders of BB Seguridade Participações S.A. (BVMF:BBSE3) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are public companies with 67% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, individual investors make up 22% of the company’s shareholders.

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

View our latest analysis for BB Seguridade Participações

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

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

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.

BB Seguridade Participações is not owned by hedge funds. Banco do Brasil S.A. is currently the company's largest shareholder with 67% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. In comparison, the second and third largest shareholders hold about 2.0% and 1.4% of the stock.

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 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 BB Seguridade Participações

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 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

With a 22% ownership, the general public, mostly comprising of individual investors, have some degree of sway over 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

It appears to us that public companies own 67% of BB Seguridade Participações. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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 BB Seguridade Participações (1 doesn't sit too well with us) that you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.