How Many Empresa Nacional de Telecomunicaciones S.A. (SNSE:ENTEL) Shares Do Institutions Own?

The big shareholder groups in Empresa Nacional de Telecomunicaciones S.A. (SNSE:ENTEL) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.

Empresa Nacional de Telecomunicaciones has a market capitalization of CL$1.4t, so we would expect some institutional investors to have noticed the stock. In the chart below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Empresa Nacional de Telecomunicaciones.

Check out our latest analysis for Empresa Nacional de Telecomunicaciones

What Does The Institutional Ownership Tell Us About Empresa Nacional de Telecomunicaciones?

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.

We can see that Empresa Nacional de Telecomunicaciones does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Empresa Nacional de Telecomunicaciones, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Empresa Nacional de Telecomunicaciones. Looking at our data, we can see that the largest shareholder is Almendral S.A. with 55% of shares outstanding. This implies that they have majority interest control of the future of the company. The second and third largest shareholders are Administradora de Fondos de Pensiones ProVida S.A. and Administradora de Fondos de Pensiones Habitat S.A., with an equal amount of shares to their name at 3.1%.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Empresa Nacional de Telecomunicaciones

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

Our data cannot confirm that board members are 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 holds a 21% stake in Empresa Nacional de Telecomunicaciones. 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 55% of the Empresa Nacional de Telecomunicaciones 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Empresa Nacional de Telecomunicaciones better, we need to consider many other factors. Be aware that Empresa Nacional de Telecomunicaciones is showing 4 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

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. 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.
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