Public companies in Eve Holding, Inc. (NYSE:EVEX) are its biggest bettors, and their bets paid off as stock gained 3.5% last week

Key Insights

• Eve Holding's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 83% of the company is held by a single shareholder (Embraer S.A.)
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

Every investor in Eve Holding, Inc. (NYSE:EVEX) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 83% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, public companies benefitted the most after the company's market cap rose by US$51m last week.

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

Check out our latest analysis for Eve Holding

What Does The Institutional Ownership Tell Us About Eve Holding?

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.

Eve Holding already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Eve Holding's historic earnings and revenue below, but keep in mind there's always more to the story.

Eve Holding is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Embraer S.A. with 83% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. BANCO BRADESCO S.A, Asset Management Arm is the second largest shareholder owning 3.0% of common stock, and The Vanguard Group, Inc. holds about 1.0% of the company stock.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Eve Holding

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. 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.

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 information suggests that Eve Holding, Inc. insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own US$2.8m worth of shares. The absolute value might be more important than the proportional share. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 11% stake in Eve Holding. 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 83% of the Eve Holding shares on issue. 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 Eve Holding better, we need to consider many other factors. Be aware that Eve Holding is showing 3 warning signs in our investment analysis , and 1 of those is 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.