Norte Grande S.A.'s (SNSE:NORTEGRAN) largest shareholders are public companies with 81% ownership, individual investors own 10%

Key Insights

• Significant control over Norte Grande by public companies implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is Tianqi Lithium Corporation with a 81% stake
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in Norte Grande S.A. (SNSE:NORTEGRAN) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 81% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Individual investors, on the other hand, account for 10% of the company's stockholders.

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

See our latest analysis for Norte Grande

What Does The Institutional Ownership Tell Us About Norte Grande?

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.

Norte Grande already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Norte Grande's earnings history below. Of course, the future is what really matters.

Norte Grande is not owned by hedge funds. Tianqi Lithium Corporation is currently the company's largest shareholder with 81% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Compass Consorcio Asset Management is the second largest shareholder owning 4.6% of common stock, and Moneda Administradora de Fondos de Inversion SA holds about 1.4% 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Norte Grande

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. 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.

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. 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

With a 10% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Norte Grande. 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

Public companies currently own 81% of Norte Grande 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Norte Grande better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Norte Grande (at least 1 which is a bit concerning) , and understanding them should be part of your investment process.

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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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.