Multiplan Empreendimentos Imobiliários S.A. (BVMF:MULT3) insiders have significant skin in the game with 35% ownership

Key Insights

• Significant insider control over Multiplan Empreendimentos Imobiliários implies vested interests in company growth
• The top 5 shareholders own 50% of the company
• Institutions own 34% of Multiplan Empreendimentos Imobiliários

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To get a sense of who is truly in control of Multiplan Empreendimentos Imobiliários S.A. (BVMF:MULT3), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 35% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.

Let's delve deeper into each type of owner of Multiplan Empreendimentos Imobiliários, beginning with the chart below.

See 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 suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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.

It would appear that 5.9% of Multiplan Empreendimentos Imobiliários shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Looking at our data, we can see that the largest shareholder is José Isaac Peres with 28% of shares outstanding. With 5.9% and 5.7% of the shares outstanding respectively, Squadra Investimentos Gestao de Recursos LTDA and Jose Peres are the second and third largest shareholders. Jose Peres, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

Our research also brought to light the fact that roughly 50% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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 Multiplan Empreendimentos Imobiliários

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

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 Multiplan Empreendimentos Imobiliários S.A.. It is very interesting to see that insiders have a meaningful R$4.6b stake in this R$13b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 13% 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Multiplan Empreendimentos Imobiliários better, we need to consider many other factors. For example, we've discovered 2 warning signs for Multiplan Empreendimentos Imobiliários that you should be aware of before investing here.

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.