Companhia Siderúrgica Nacional (BVMF:CSNA3) stock most popular amongst private companies who own 55%, while individual investors hold 30%

Key Insights

• The considerable ownership by private companies in Companhia Siderúrgica Nacional indicates that they collectively have a greater say in management and business strategy
• 55% of the business is held by the top 2 shareholders
• Institutional ownership in Companhia Siderúrgica Nacional is 15%

To get a sense of who is truly in control of Companhia Siderúrgica Nacional (BVMF:CSNA3), it is important to understand the ownership structure of the business. With 55% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, individual investors make up 30% of the company’s shareholders.

Let's delve deeper into each type of owner of Companhia Siderúrgica Nacional, beginning with the chart below.

View our latest analysis for Companhia Siderúrgica Nacional

What Does The Institutional Ownership Tell Us About Companhia Siderúrgica Nacional?

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.

Companhia Siderúrgica Nacional 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 Companhia Siderúrgica Nacional's earnings history below. Of course, the future is what really matters.

Companhia Siderúrgica Nacional is not owned by hedge funds. Our data shows that Rio Purus Participações S.A. is the largest shareholder with 44% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 10% and 3.1%, of the shares outstanding, respectively.

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 55% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Companhia Siderúrgica Nacional

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.

We note our data does not show any board members holding shares, personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public-- including retail investors -- own 30% 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.

Private Company Ownership

We can see that Private Companies own 55%, 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Companhia Siderúrgica Nacional better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Companhia Siderúrgica Nacional (of which 1 doesn't sit too well with us!) you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.