What Type Of Shareholders Make Up Intelbras S.A. - Indústria de Telecomunicação Eletrônica Brasileira's (BVMF:INTB3) Share Registry?

By
Simply Wall St
Published
January 12, 2022
BOVESPA:INTB3
Source: Shutterstock

Every investor in Intelbras S.A. - Indústria de Telecomunicação Eletrônica Brasileira (BVMF:INTB3) 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. 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.

Intelbras - Indústria de Telecomunicação Eletrônica Brasileira has a market capitalization of R$7.7b, so we would expect some institutional investors to have noticed the stock. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Intelbras - Indústria de Telecomunicação Eletrônica Brasileira.

View our latest analysis for Intelbras - Indústria de Telecomunicação Eletrônica Brasileira

ownership-breakdown
BOVESPA:INTB3 Ownership Breakdown January 12th 2022

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.

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

earnings-and-revenue-growth
BOVESPA:INTB3 Earnings and Revenue Growth January 12th 2022

We note that hedge funds don't have a meaningful investment in Intelbras - Indústria de Telecomunicação Eletrônica Brasileira. The company's largest shareholder is Antonia de Freitas Tonin, with ownership of 9.7%. In comparison, the second and third largest shareholders hold about 9.7% and 8.6% of the stock. Furthermore, CEO Altair Silvestri is the owner of 0.7% of the company's shares.

We did some more digging and found that 6 of the top shareholders account for roughly 50% 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 an insider can differ slightly between different countries, but members of the board of directors always count. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders own more than half of Intelbras S.A. - Indústria de Telecomunicação Eletrônica Brasileira. This gives them effective control of the company. That means insiders have a very meaningful R$5.3b stake in this R$7.7b business. 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 13% stake in 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.

Private Company Ownership

It seems that Private Companies own 8.6%, of the Intelbras - Indústria de Telecomunicação Eletrônica Brasileira stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

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. Take risks for example - Intelbras - Indústria de Telecomunicação Eletrônica Brasileira has 2 warning signs (and 1 which is significant) we think you should know about.

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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