Institutions own 33% of Motiva Infraestrutura de Mobilidade S.A. (BVMF:MOTV3) shares but private companies control 51% of the company

Key Insights

• The considerable ownership by private companies in Motiva Infraestrutura de Mobilidade indicates that they collectively have a greater say in management and business strategy
• A total of 5 investors have a majority stake in the company with 57% ownership
• Institutions own 33% of Motiva Infraestrutura de Mobilidade

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To get a sense of who is truly in control of Motiva Infraestrutura de Mobilidade S.A. (BVMF:MOTV3), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 51% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).

And institutions on the other hand have a 33% ownership in the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

Let's take a closer look to see what the different types of shareholders can tell us about Motiva Infraestrutura de Mobilidade.

Check out our latest analysis for Motiva Infraestrutura de Mobilidade

What Does The Institutional Ownership Tell Us About Motiva Infraestrutura de Mobilidade?

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 Motiva Infraestrutura de Mobilidade 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. 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 Motiva Infraestrutura de Mobilidade's historic earnings and revenue below, but keep in mind there's always more to the story.

Motiva Infraestrutura de Mobilidade is not owned by hedge funds. The company's largest shareholder is Participações Morro Vermelho S.A., with ownership of 15%. The second and third largest shareholders are Soares Penido Concessões S.A. and Opper Investimentos S.A., with an equal amount of shares to their name at 10%.

Our research also brought to light the fact that roughly 57% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Motiva Infraestrutura de Mobilidade

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.

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 data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public-- including retail investors -- own 16% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 51%, of the Motiva Infraestrutura de Mobilidade stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Motiva Infraestrutura de Mobilidade better, we need to consider many other factors. For example, we've discovered 1 warning sign for Motiva Infraestrutura de Mobilidade that you should be aware of before investing here.

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.