How Much Of São Carlos Empreendimentos e Participações S.A. (BVMF:SCAR3) Do Insiders Own?

Every investor in São Carlos Empreendimentos e Participações S.A. (BVMF:SCAR3) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

With a market capitalization of R$2.4b, São Carlos Empreendimentos e Participações is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about São Carlos Empreendimentos e Participações.

See our latest analysis for São Carlos Empreendimentos e Participações

What Does The Institutional Ownership Tell Us About São Carlos Empreendimentos e Participações?

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.

We can see that São Carlos Empreendimentos e Participações 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 São Carlos Empreendimentos e Participações, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in São Carlos Empreendimentos e Participações. J.P. Morgan Asset Management, Inc. is currently the company's largest shareholder with 17% of shares outstanding. The second and third largest shareholders are Marcel Telles and Christian Van Hoegaerden Herrmann Telles, with an equal amount of shares to their name at 8.5%.

We did some more digging and found that 6 of the top shareholders account for roughly 52% 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 São Carlos Empreendimentos e Participações

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.

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.

Our information suggests that insiders own more than half of São Carlos Empreendimentos e Participações S.A.. This gives them effective control of the company. That means they own R$1.3b worth of shares in the R$2.4b company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public holds a 18% stake in São Carlos Empreendimentos e Participações. 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 São Carlos Empreendimentos e Participações better, we need to consider many other factors. For example, we've discovered 2 warning signs for São Carlos Empreendimentos e Participações (1 doesn't sit too well with us!) 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. 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.
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