Institutions profited after Vamos Locação de Caminhões, Máquinas e Equipamentos S.A.'s (BVMF:VAMO3) market cap rose R$458m last week but private companies profited the most

Key Insights

• Vamos Locação de Caminhões Máquinas e Equipamentos' significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• JSP Holding S.A. owns 58% of the company
• Institutional ownership in Vamos Locação de Caminhões Máquinas e Equipamentos is 22%

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Every investor in Vamos Locação de Caminhões, Máquinas e Equipamentos S.A. (BVMF:VAMO3) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are private companies with 58% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 13% increase in the stock price last week, private companies profited the most, but institutions who own 22% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about Vamos Locação de Caminhões Máquinas e Equipamentos.

Check out our latest analysis for Vamos Locação de Caminhões Máquinas e Equipamentos

What Does The Institutional Ownership Tell Us About Vamos Locação de Caminhões Máquinas e Equipamentos?

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.

Vamos Locação de Caminhões Máquinas e Equipamentos 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. 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 Vamos Locação de Caminhões Máquinas e Equipamentos, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Vamos Locação de Caminhões Máquinas e Equipamentos. Looking at our data, we can see that the largest shareholder is JSP Holding S.A. with 58% of shares outstanding. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 5.2% and 4.5% of the stock.

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 Vamos Locação de Caminhões Máquinas e Equipamentos

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. 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.

We note our data does not show any board members 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 20% stake in the company, and hence can't easily be ignored. 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 58%, of the Vamos Locação de Caminhões Máquinas e Equipamentos 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 4 warning signs for Vamos Locação de Caminhões Máquinas e Equipamentos (2 shouldn't be ignored!) that you should be aware of before investing here.

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.

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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.