Public companies who hold 72% of Cencosud Shopping S.A. (SNSE:CENCOMALLS) gained 3.2%, institutions profited as well

Key Insights

• The considerable ownership by public companies in Cencosud Shopping indicates that they collectively have a greater say in management and business strategy
• Cencosud S.A. owns 72% of the company
• Institutions own 17% of Cencosud Shopping

If you want to know who really controls Cencosud Shopping S.A. (SNSE:CENCOMALLS), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 72% 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.

Public companies gained the most after market cap touched CL$2.4t last week, while institutions who own 17% also benefitted.

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

See our latest analysis for Cencosud Shopping

What Does The Institutional Ownership Tell Us About Cencosud Shopping?

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 Cencosud Shopping. 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 Cencosud Shopping's earnings history below. Of course, the future is what really matters.

Cencosud Shopping is not owned by hedge funds. Cencosud S.A. is currently the company's largest shareholder with 72% of shares outstanding. This implies that they have majority interest control of the future of the company. With 4.3% and 3.1% of the shares outstanding respectively, Administradora de Fondos de Pensiones Cuprum S.A. and Administradora de Fondos de Pensiones Habitat S.A. are the second and third largest shareholders.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Cencosud Shopping

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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

The general public, who are usually individual investors, hold a 11% stake in Cencosud Shopping. 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 72% of Cencosud Shopping 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 Cencosud Shopping better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Cencosud Shopping .

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com