Stock Analysis

Administradora de Fondos de Pensiones Habitat S.A.'s (SNSE:HABITAT) largest shareholders are public companies who were rewarded as market cap surged CL$44b last week

SNSE:HABITAT
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Key Insights

  • Administradora de Fondos de Pensiones Habitat's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
  • A total of 2 investors have a majority stake in the company with 81% ownership
  • Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of Administradora de Fondos de Pensiones Habitat S.A. (SNSE:HABITAT), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 82% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, public companies benefitted the most after the company's market cap rose by CL$44b last week.

Let's take a closer look to see what the different types of shareholders can tell us about Administradora de Fondos de Pensiones Habitat.

View our latest analysis for Administradora de Fondos de Pensiones Habitat

ownership-breakdown
SNSE:HABITAT Ownership Breakdown December 29th 2023

What Does The Institutional Ownership Tell Us About Administradora de Fondos de Pensiones Habitat?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Administradora de Fondos de Pensiones Habitat. 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 Administradora de Fondos de Pensiones Habitat, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SNSE:HABITAT Earnings and Revenue Growth December 29th 2023

We note that hedge funds don't have a meaningful investment in Administradora de Fondos de Pensiones Habitat. Our data shows that Inversiones La Construcción S.A. is the largest shareholder with 40% of shares outstanding. With 40% and 3.7% of the shares outstanding respectively, Prudential Financial, Inc. and Inversiones Unión Española S.A. are the second and third largest shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Administradora de Fondos de Pensiones Habitat

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.

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.

We note our data does not show any board members holding shares, personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

With a 13% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Administradora de Fondos de Pensiones Habitat. 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.

Public Company Ownership

We can see that public companies hold 82% of the Administradora de Fondos de Pensiones Habitat shares on issue. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Administradora de Fondos de Pensiones Habitat you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Administradora de Fondos de Pensiones Habitat is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.