Do Institutions Own Cristalerías de Chile S.A. (SNSE:CRISTALES) Shares?

By
Simply Wall St
Published
May 19, 2021
SNSE:CRISTALES
Source: Shutterstock

Every investor in Cristalerías de Chile S.A. (SNSE:CRISTALES) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.

Cristalerías de Chile is a smaller company with a market capitalization of CL$207b, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about Cristalerías de Chile.

See our latest analysis for Cristalerías de Chile

ownership-breakdown
SNSE:CRISTALES Ownership Breakdown May 20th 2021

What Does The Institutional Ownership Tell Us About Cristalerías 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.

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

earnings-and-revenue-growth
SNSE:CRISTALES Earnings and Revenue Growth May 20th 2021

We note that hedge funds don't have a meaningful investment in Cristalerías de Chile. Our data shows that Compañía Electro Metalúrgica S.A. is the largest shareholder with 34% of shares outstanding. The second and third largest shareholders are Moneda S.A. Administradora General de Fondos and Servicios y Consultorías Hendaya, with an equal amount of shares to their name at 10%.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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 Cristalerías de Chile

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.

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

The general public, with a 11% stake in the company, will not 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.

Private Company Ownership

Our data indicates that Private Companies hold 26%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public Company Ownership

Public companies currently own 34% of Cristalerías de Chile stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Cristalerías de Chile better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Cristalerías de Chile (including 2 which make us uncomfortable) .

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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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