Institutional investors own a significant stake of 34% in Multiplan Empreendimentos Imobiliários S.A. (BVMF:MULT3)

Key Insights

• Significantly high institutional ownership implies Multiplan Empreendimentos Imobiliários' stock price is sensitive to their trading actions
• The top 6 shareholders own 54% of the company
• 34% of Multiplan Empreendimentos Imobiliários is held by insiders

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Every investor in Multiplan Empreendimentos Imobiliários S.A. (BVMF:MULT3) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 34% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.

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

View our latest analysis for Multiplan Empreendimentos Imobiliários

What Does The Institutional Ownership Tell Us About Multiplan Empreendimentos Imobiliários?

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.

We can see that Multiplan Empreendimentos Imobiliários does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Multiplan Empreendimentos Imobiliários, (below). Of course, keep in mind that there are other factors to consider, too.

Our data indicates that hedge funds own 5.9% of Multiplan Empreendimentos Imobiliários. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Looking at our data, we can see that the largest shareholder is José Isaac Peres with 28% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.9% and 5.2%, of the shares outstanding, respectively.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 Multiplan Empreendimentos Imobiliários

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.

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 Multiplan Empreendimentos Imobiliários S.A.. It has a market capitalization of just R$14b, and insiders have R$4.8b 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

With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Multiplan Empreendimentos Imobiliários. 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.

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 Multiplan Empreendimentos Imobiliários that you should be aware of.

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.