Insiders with their considerable ownership were the key benefactors as Vinci Compass Investments Ltd. (NASDAQ:VINP) touches US$638m market cap

Explore Vinci Compass Investments's Fair Values from the Community and select yours

Key Insights

• Vinci Compass Investments' significant insider ownership suggests inherent interests in company's expansion
• 54% of the business is held by the top 4 shareholders
• Institutions own 14% of Vinci Compass Investments

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A look at the shareholders of Vinci Compass Investments Ltd. (NASDAQ:VINP) can tell us which group is most powerful. With 43% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by US$52m last week.

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

See our latest analysis for Vinci Compass Investments

What Does The Institutional Ownership Tell Us About Vinci Compass Investments?

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.

Vinci Compass Investments already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Vinci Compass Investments' earnings history below. Of course, the future is what really matters.

Our data indicates that hedge funds own 5.9% of Vinci Compass Investments. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Looking at our data, we can see that the largest shareholder is Gilberto Sayao da Silva with 23% of shares outstanding. Alessandro Monteiro Morgado Horta is the second largest shareholder owning 13% of common stock, and Costanera Management Llc holds about 11% of the company stock. Alessandro Monteiro Morgado Horta, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 Vinci Compass Investments

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Vinci Compass Investments Ltd.. Insiders own US$275m worth of shares in the US$638m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 19% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 19%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Vinci Compass Investments better, we need to consider many other factors. For example, we've discovered 5 warning signs for Vinci Compass Investments (2 are significant!) that you should be aware of before investing here.

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.