Intelbras S.A. - Indústria de Telecomunicação Eletrônica Brasileira (BVMF:INTB3) adds R$275m in market cap and insiders have a 64% stake in that gain

Key Insights

• Intelbras - Indústria de Telecomunicação Eletrônica Brasileira's significant insider ownership suggests inherent interests in company's expansion
• 52% of the business is held by the top 7 shareholders
• 12% of Intelbras - Indústria de Telecomunicação Eletrônica Brasileira is held by Institutions

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A look at the shareholders of Intelbras S.A. - Indústria de Telecomunicação Eletrônica Brasileira (BVMF:INTB3) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 64% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 7.5% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Intelbras - Indústria de Telecomunicação Eletrônica Brasileira.

Check out our latest analysis for Intelbras - Indústria de Telecomunicação Eletrônica Brasileira

What Does The Institutional Ownership Tell Us About Intelbras - Indústria de Telecomunicação Eletrônica Brasileira?

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 Intelbras - Indústria de Telecomunicação Eletrônica Brasileira 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 Intelbras - Indústria de Telecomunicação Eletrônica Brasileira, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Intelbras - Indústria de Telecomunicação Eletrônica Brasileira. Looking at our data, we can see that the largest shareholder is Antonia de Freitas Tonin with 9.7% of shares outstanding. For context, the second largest shareholder holds about 9.7% of the shares outstanding, followed by an ownership of 7.6% by the third-largest shareholder.

We did some more digging and found that 7 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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Intelbras - Indústria de Telecomunicação Eletrônica Brasileira

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. 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.

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 that insiders own more than half the Intelbras S.A. - Indústria de Telecomunicação Eletrônica Brasileira stock. This gives them a lot of power. Given it has a market cap of R$3.9b, that means they have R$2.5b worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Intelbras - Indústria de Telecomunicação Eletrônica Brasileira. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

We can see that public companies hold 7.6% of the Intelbras - Indústria de Telecomunicação Eletrônica Brasileira shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Intelbras - Indústria de Telecomunicação Eletrônica Brasileira better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Intelbras - Indústria de Telecomunicação Eletrônica Brasileira (of which 1 makes us a bit uncomfortable!) you should know about.

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.