Vamos Locação de Caminhões, Máquinas e Equipamentos S.A.'s (BVMF:VAMO3) stock price dropped 12% last week; private companies would not be happy

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 55% of the company
• Institutional ownership in Vamos Locação de Caminhões Máquinas e Equipamentos is 18%

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 55% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, private companies endured the biggest losses as the stock fell by 12%.

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?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Vamos Locação de Caminhões Máquinas e Equipamentos 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. 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. JSP Holding S.A. is currently the company's largest shareholder with 55% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 3.5% and 1.8% of the shares outstanding respectively, FMR LLC and BlackRock, Inc. are the second and third largest shareholders.

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 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. 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.

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, who are usually individual investors, hold a 26% stake in Vamos Locação de Caminhões Máquinas e Equipamentos. 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.

Private Company Ownership

Our data indicates that Private Companies hold 55%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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. Take risks for example - Vamos Locação de Caminhões Máquinas e Equipamentos has 4 warning signs (and 2 which are a bit unpleasant) 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.