Private companies among Vamos Locação de Caminhões, Máquinas e Equipamentos S.A.'s (BVMF:VAMO3) largest stockholders and were hit after last week's 8.4% price drop

Key Insights

• Significant control over Vamos Locação de Caminhões Máquinas e Equipamentos by private companies implies that the general public has more power to influence management and governance-related decisions
• 56% of the company is held by a single shareholder (JSP Holding S.A.)
• 18% of Vamos Locação de Caminhões Máquinas e Equipamentos is held by Institutions

To get a sense of who is truly in control of Vamos Locação de Caminhões, Máquinas e Equipamentos S.A. (BVMF:VAMO3), it is important to understand the ownership structure of the business. With 56% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 8.4% decline in share price, private companies suffered the most losses.

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 implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Vamos Locação de Caminhões Máquinas e Equipamentos' earnings history below. Of course, the future is what really matters.

Vamos Locação de Caminhões Máquinas e Equipamentos is not owned by hedge funds. JSP Holding S.A. is currently the largest shareholder, with 56% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 5.1% and 1.6% of the shares outstanding respectively, FMR LLC and BlackRock, Inc. are the second and third largest shareholders.

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 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

With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Vamos Locação de Caminhões Máquinas e Equipamentos. 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 56%, of the Vamos Locação de Caminhões Máquinas e Equipamentos 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Vamos Locação de Caminhões Máquinas e Equipamentos has 3 warning signs (and 2 which are potentially serious) we think you should know about.

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.