Positivo Tecnologia S.A.'s (BVMF:POSI3) most bullish insider is CEO Helium Rotenberg, and their holdings value went up by 11% last week

Key Insights

• Significant insider control over Positivo Tecnologia implies vested interests in company growth
• 52% of the business is held by the top 12 shareholders
• Institutions own 18% of Positivo Tecnologia

To get a sense of who is truly in control of Positivo Tecnologia S.A. (BVMF:POSI3), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 48% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by R$119m last week.

Let's delve deeper into each type of owner of Positivo Tecnologia, beginning with the chart below.

View our latest analysis for Positivo Tecnologia

What Does The Institutional Ownership Tell Us About Positivo Tecnologia?

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.

Positivo Tecnologia already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Positivo Tecnologia, (below). Of course, keep in mind that there are other factors to consider, too.

Positivo Tecnologia is not owned by hedge funds. The company's CEO Helium Rotenberg is the largest shareholder with 13% of shares outstanding. Cixares Vargas is the second largest shareholder owning 6.9% of common stock, and Zenith Asset Management Ltda holds about 5.0% of the company stock.

Looking at the shareholder registry, we can see that 52% of the ownership is controlled by the top 12 shareholders, meaning that no single shareholder has a majority interest in the ownership.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. 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 Positivo Tecnologia

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

Our most recent data indicates that insiders own a reasonable proportion of Positivo Tecnologia S.A.. It has a market capitalization of just R$1.2b, and insiders have R$581m worth of shares in their own names. 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

With a 35% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Positivo Tecnologia. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Positivo Tecnologia better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Positivo Tecnologia (at least 1 which shouldn't be ignored) , and understanding them should be part of your investment process.

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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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com