Public companies who hold 41% of Dexco S.A. (BVMF:DXCO3) gained 5.8%, institutions profited as well

Key Insights

• Dexco's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 62% of the business is held by the top 2 shareholders
• 21% of Dexco is held by insiders

A look at the shareholders of Dexco S.A. (BVMF:DXCO3) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are public companies with 41% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 5.8% increase in the stock price last week, public companies profited the most, but institutions who own 22% stock also stood to gain from the increase.

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

Check out our latest analysis for Dexco

What Does The Institutional Ownership Tell Us About Dexco?

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 Dexco. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Dexco's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Dexco. Itaúsa S.A. is currently the largest shareholder, with 41% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 21% and 5.1%, 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 62% 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Dexco

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Dexco S.A.. It has a market capitalization of just R$6.9b, and insiders have R$1.4b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. 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 16% stake in Dexco. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

It appears to us that public companies own 41% of Dexco. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Dexco better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Dexco you should be aware of, and 1 of them makes us a bit uncomfortable.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.