Public companies among Nitratos de Chile S.A.'s (SNSE:NITRATOS) largest shareholders, saw gain in holdings value after stock jumped 21% last week

By
Simply Wall St
Published
November 24, 2021
SNSE:NITRATOS
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Every investor in Nitratos de Chile S.A. (SNSE:NITRATOS) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 80% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies were the biggest beneficiaries of last week’s 21% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Nitratos de Chile.

View our latest analysis for Nitratos de Chile

ownership-breakdown
SNSE:NITRATOS Ownership Breakdown November 24th 2021

What Does The Institutional Ownership Tell Us About Nitratos de Chile?

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 Nitratos de Chile 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. 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 Nitratos de Chile's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SNSE:NITRATOS Earnings and Revenue Growth November 24th 2021

Nitratos de Chile is not owned by hedge funds. Our data shows that Tianqi Lithium Corporation is the largest shareholder with 80% of shares outstanding. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 3.4% and 1.6% of the 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Nitratos de Chile

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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

With a 12% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Nitratos de Chile. 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

Public companies currently own 80% of Nitratos de Chile stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 4 warning signs for Nitratos de Chile (2 shouldn't be ignored!) that you should be aware of before investing here.

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.

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