Stock Analysis

Public companies among Sociedad Matriz SAAM S.A.'s (SNSE:SMSAAM) largest shareholders, saw gain in holdings value after stock jumped 6.0% last week

SNSE:SMSAAM
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Key Insights

  • The considerable ownership by public companies in Sociedad Matriz SAAM indicates that they collectively have a greater say in management and business strategy
  • 63% of the company is held by a single shareholder (Quiñenco S.A.)
  • Institutions own 13% of Sociedad Matriz SAAM

To get a sense of who is truly in control of Sociedad Matriz SAAM S.A. (SNSE:SMSAAM), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 63% to be precise, is public companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, public companies collectively scored the highest last week as the company hit CL$1.1t market cap following a 6.0% gain in the stock.

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

Check out our latest analysis for Sociedad Matriz SAAM

ownership-breakdown
SNSE:SMSAAM Ownership Breakdown February 16th 2024

What Does The Institutional Ownership Tell Us About Sociedad Matriz SAAM?

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.

As you can see, institutional investors have a fair amount of stake in Sociedad Matriz SAAM. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Sociedad Matriz SAAM's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
SNSE:SMSAAM Earnings and Revenue Growth February 16th 2024

We note that hedge funds don't have a meaningful investment in Sociedad Matriz SAAM. Our data shows that Quiñenco S.A. is the largest shareholder with 63% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. For context, the second largest shareholder holds about 4.6% of the shares outstanding, followed by an ownership of 2.8% by the third-largest shareholder.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Sociedad Matriz SAAM

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. 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.

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 22% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Sociedad Matriz SAAM. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

It appears to us that public companies own 63% of Sociedad Matriz SAAM. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 4 warning signs for Sociedad Matriz SAAM you should be aware of, and 2 of them can't be ignored.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Sociedad Matriz SAAM is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.