Blau Farmacêutica S.A.'s (BVMF:BLAU3) CEO Marcelo Hahn is the most upbeat insider, and their holdings increased by 15% last week

Simply Wall St · 10/18 11:14

Key Insights

  • Blau Farmacêutica's significant insider ownership suggests inherent interests in company's expansion
  • The largest shareholder of the company is Marcelo Hahn with a 83% stake
  • Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

A look at the shareholders of Blau Farmacêutica S.A. (BVMF:BLAU3) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 83% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by R$338m last week.

In the chart below, we zoom in on the different ownership groups of Blau Farmacêutica.

See our latest analysis for Blau Farmacêutica

ownership-breakdown
BOVESPA:BLAU3 Ownership Breakdown October 18th 2024

What Does The Institutional Ownership Tell Us About Blau Farmacêutica?

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.

As you can see, institutional investors have a fair amount of stake in Blau Farmacêutica. 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 Blau Farmacêutica's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
BOVESPA:BLAU3 Earnings and Revenue Growth October 18th 2024

Hedge funds don't have many shares in Blau Farmacêutica. With a 83% stake, CEO Marcelo Hahn is the largest shareholder. With such a huge stake, we infer that they have significant control of the future of the company. It's usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider with such skin in the game. For context, the second largest shareholder holds about 3.4% of the shares outstanding, followed by an ownership of 0.6% 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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Blau Farmacêutica

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.

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.

Our most recent data indicates that insiders own the majority of Blau Farmacêutica S.A.. This means they can collectively make decisions for the company. That means they own R$2.2b worth of shares in the R$2.7b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 10% stake in Blau Farmacêutica. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 3 warning signs for Blau Farmacêutica that you should be aware of.

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.