Public companies account for 69% of Engie Brasil Energia S.A.'s (BVMF:EGIE3) ownership, while institutions account for 18%

Key Insights

• Engie Brasil Energia's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 69% of the company is held by a single shareholder (Engie SA)
• Institutions own 18% of Engie Brasil Energia

To get a sense of who is truly in control of Engie Brasil Energia S.A. (BVMF:EGIE3), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are public companies with 69% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Institutions, on the other hand, account for 18% of the company's stockholders. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.

Let's take a closer look to see what the different types of shareholders can tell us about Engie Brasil Energia.

View our latest analysis for Engie Brasil Energia

What Does The Institutional Ownership Tell Us About Engie Brasil Energia?

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.

As you can see, institutional investors have a fair amount of stake in Engie Brasil Energia. 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. 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 Engie Brasil Energia's historic earnings and revenue below, but keep in mind there's always more to the story.

Engie Brasil Energia is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Engie SA with 69% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Banco Clássico, S.A., Asset Management Arm is the second largest shareholder owning 9.9% of common stock, and BlackRock, Inc. holds about 1.8% of the company 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Engie Brasil Energia

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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. 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 14% 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.

Public Company Ownership

It appears to us that public companies own 69% of Engie Brasil Energia. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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 2 warning signs for Engie Brasil Energia (1 is potentially serious!) that you should be aware of before investing here.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.