Companhia de Saneamento de Minas Gerais' (BVMF:CSMG3) biggest owners are state or government who got richer after stock soared 4.1% last week

Key Insights

• Companhia de Saneamento de Minas Gerais' significant state or government ownership suggests that the key decisions are influenced by shareholders from the larger public
• 50% of the company is held by a single shareholder (State of Minas Gerais, Brazil.)
• 18% of Companhia de Saneamento de Minas Gerais is held by Institutions

If you want to know who really controls Companhia de Saneamento de Minas Gerais (BVMF:CSMG3), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are state or government with 50% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, state or government collectively scored the highest last week as the company hit R$7.1b market cap following a 4.1% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Companhia de Saneamento de Minas Gerais.

Check out our latest analysis for Companhia de Saneamento de Minas Gerais

What Does The Institutional Ownership Tell Us About Companhia de Saneamento de Minas Gerais?

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.

Companhia de Saneamento de Minas Gerais already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Companhia de Saneamento de Minas Gerais' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Companhia de Saneamento de Minas Gerais. State of Minas Gerais, Brazil. is currently the company's largest shareholder with 50% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. For context, the second largest shareholder holds about 5.0% of the shares outstanding, followed by an ownership of 3.5% 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Companhia de Saneamento de Minas Gerais

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We note our data does not show any board members holding shares, personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public-- including retail investors -- own 31% 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Companhia de Saneamento de Minas Gerais better, we need to consider many other factors. For example, we've discovered 2 warning signs for Companhia de Saneamento de Minas Gerais that you should be aware of before investing here.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.