Compañía Sud Americana de Vapores S.A.'s (SNSE:VAPORES) market cap surged CL$220b last week, public companies who have a lot riding on the company were rewarded

Key Insights

• Compañía Sud Americana de Vapores' significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 66% of the company is held by a single shareholder (Quiñenco SA)
• Institutions own 15% of Compañía Sud Americana de Vapores

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Every investor in Compañía Sud Americana de Vapores S.A. (SNSE:VAPORES) should be aware of the most powerful shareholder groups. With 66% stake, public companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, public companies collectively scored the highest last week as the company hit CL$2.7t market cap following a 8.8% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Compañía Sud Americana de Vapores.

View our latest analysis for Compañía Sud Americana de Vapores

What Does The Institutional Ownership Tell Us About Compañía Sud Americana de Vapores?

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.

We can see that Compañía Sud Americana de Vapores does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Compañía Sud Americana de Vapores' historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Compañía Sud Americana de Vapores. Looking at our data, we can see that the largest shareholder is Quiñenco SA with 66% of shares outstanding. This implies that they have majority interest control of the future of the company. Marítima de Inversiones S.A. is the second largest shareholder owning 6.1% of common stock, and Santiago Stock Exchange, Asset Management Arm holds about 1.2% 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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Compañía Sud Americana de Vapores

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

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, who are usually individual investors, hold a 19% stake in Compañía Sud Americana de Vapores. 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

Public companies currently own 66% of Compañía Sud Americana de Vapores stock. 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 Compañía Sud Americana de Vapores better, we need to consider many other factors. Be aware that Compañía Sud Americana de Vapores is showing 4 warning signs in our investment analysis , and 3 of those are significant...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.