Here's What Moura Dubeux Engenharia S.A.'s (BVMF:MDNE3) Shareholder Ownership Structure Looks Like

Simply Wall St
August 17, 2021
Source: Shutterstock

If you want to know who really controls Moura Dubeux Engenharia S.A. (BVMF:MDNE3), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

With a market capitalization of R$611m, Moura Dubeux Engenharia is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about Moura Dubeux Engenharia.

See our latest analysis for Moura Dubeux Engenharia

BOVESPA:MDNE3 Ownership Breakdown August 18th 2021

What Does The Institutional Ownership Tell Us About Moura Dubeux Engenharia?

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.

We can see that Moura Dubeux Engenharia does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Moura Dubeux Engenharia, (below). Of course, keep in mind that there are other factors to consider, too.

BOVESPA:MDNE3 Earnings and Revenue Growth August 18th 2021

Our data indicates that hedge funds own 6.2% of Moura Dubeux Engenharia. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Our data suggests that Gustavo José Dubeux, who is also the company's Senior Key Executive, holds the most number of shares at 10%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. The second and third largest shareholders are Marcos De Mello Moura Dubeux and Aluisio José Dubeux, with an equal amount of shares to their name at 10%. Interestingly, the third-largest shareholder, Aluisio José Dubeux is also a Vice Chairman, again, indicating strong insider ownership amongst the company's top shareholders.

We did some more digging and found that 7 of the top shareholders account for roughly 56% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Moura Dubeux Engenharia

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of Moura Dubeux Engenharia S.A.. Insiders have a R$191m stake in this R$611m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, with a 16% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Moura Dubeux Engenharia better, we need to consider many other factors. Take risks for example - Moura Dubeux Engenharia has 1 warning sign we think you should be aware of.

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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