The recent pullback must have dismayed Intelbras S.A. - Indústria de Telecomunicação Eletrônica Brasileira (BVMF:INTB3) insiders who own 65% of the company

Key Insights

• Significant insider control over Intelbras - Indústria de Telecomunicação Eletrônica Brasileira implies vested interests in company growth
• The top 7 shareholders own 52% of the company
• Institutional ownership in Intelbras - Indústria de Telecomunicação Eletrônica Brasileira is 15%

If you want to know who really controls Intelbras S.A. - Indústria de Telecomunicação Eletrônica Brasileira (BVMF:INTB3), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 65% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to R$7.6b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of Intelbras - Indústria de Telecomunicação Eletrônica Brasileira, beginning with the chart below.

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?

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.

Intelbras - Indústria de Telecomunicação Eletrônica Brasileira already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Intelbras - Indústria de Telecomunicação Eletrônica Brasileira's historic earnings and revenue below, but keep in mind there's always more to the story.

Intelbras - Indústria de Telecomunicação Eletrônica Brasileira is not owned by hedge funds. Our data shows that Antonia de Freitas Tonin is the largest shareholder with 9.7% of shares outstanding. Maria de Freitas Francalacci is the second largest shareholder owning 9.7% of common stock, and Zhejiang Dahua Technology Co., Ltd. holds about 7.6% of the company stock. Furthermore, CEO Altair Silvestri is the owner of 0.7% of the company's shares.

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.

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 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. 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.

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 that insiders own more than half the Intelbras S.A. - Indústria de Telecomunicação Eletrônica Brasileira stock. This gives them a lot of power. Insiders own R$5.0b worth of shares in the R$7.6b company. That's extraordinary! Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

The general public, who are usually individual investors, hold a 12% stake in Intelbras - Indústria de Telecomunicação Eletrônica Brasileira. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 7.6% of Intelbras - Indústria de Telecomunicação Eletrônica Brasileira stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Intelbras - Indústria de Telecomunicação Eletrônica Brasileira .

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.