While individual investors own 20% of Enel Chile S.A. (SNSE:ENELCHILE), public companies are its largest shareholders with 64% ownership

Key Insights

• Significant control over Enel Chile by public companies implies that this group likely has considerable sway over management and governance-related decisions
• 64% of the company is held by a single shareholder (Enel SpA)
• own 16% of Enel Chile

A look at the shareholders of Enel Chile S.A. (SNSE:ENELCHILE) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are public companies with 64% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Individual investors, on the other hand, account for 20% of the company's stockholders.

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

See our latest analysis for Enel Chile

What Does The Institutional Ownership Tell Us About Enel Chile?

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 Enel Chile. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Enel Chile's historic earnings and revenue below, but keep in mind there's always more to the story.

Enel Chile is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Enel SpA with 64% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 1.6% and 1.5% of the shares outstanding respectively, Brandes Investment Partners, LP and The Vanguard Group, Inc. 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Enel Chile

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.

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.

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

The general public, who are usually individual investors, hold a 20% stake in Enel Chile. 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 64% of Enel Chile. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Enel Chile (of which 2 are potentially serious!) you should know about.

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.