Private companies are EcoRodovias Infraestrutura e Logística S.A.'s (BVMF:ECOR3) biggest owners and were rewarded after market cap rose by R$334m last week

Key Insights

• Significant control over EcoRodovias Infraestrutura e Logística by private companies implies that the general public has more power to influence management and governance-related decisions
• Nuova Argo Finanziaria S.p.A. owns 52% of the company
• Institutions own 13% of EcoRodovias Infraestrutura e Logística

A look at the shareholders of EcoRodovias Infraestrutura e Logística S.A. (BVMF:ECOR3) can tell us which group is most powerful. With 52% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, private companies benefitted the most after the company's market cap rose by R$334m last week.

Let's take a closer look to see what the different types of shareholders can tell us about EcoRodovias Infraestrutura e Logística.

View our latest analysis for EcoRodovias Infraestrutura e Logística

What Does The Institutional Ownership Tell Us About EcoRodovias Infraestrutura e Logística?

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 EcoRodovias Infraestrutura e Logística 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. 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 EcoRodovias Infraestrutura e Logística's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in EcoRodovias Infraestrutura e Logística. Nuova Argo Finanziaria S.p.A. is currently the company's largest shareholder with 52% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 3.2% of the shares outstanding, followed by an ownership of 1.5% by the third-largest shareholder.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of EcoRodovias Infraestrutura e Logística

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

With a 35% ownership, the general public, mostly comprising of individual investors, have some degree of sway over EcoRodovias Infraestrutura e Logística. 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 52%, of the EcoRodovias Infraestrutura e Logística 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that EcoRodovias Infraestrutura e Logística is showing 3 warning signs in our investment analysis , and 2 of those can't be ignored...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

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

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.