Três Tentos Agroindustrial S/A's (BVMF:TTEN3) stock price dropped 4.8% last week; private companies would not be happy
Key Insights
- Três Tentos Agroindustrial S/A's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
- A total of 5 investors have a majority stake in the company with 56% ownership
- 35% of Três Tentos Agroindustrial S/A is held by insiders
If you want to know who really controls Três Tentos Agroindustrial S/A (BVMF:TTEN3), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are private companies with 42% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
While the holdings of private companies took a hit after last week’s 4.8% price drop, insiders with their 35% also suffered.
Let's take a closer look to see what the different types of shareholders can tell us about Três Tentos Agroindustrial S/A.
Check out our latest analysis for Três Tentos Agroindustrial S/A
What Does The Institutional Ownership Tell Us About Três Tentos Agroindustrial S/A?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Três Tentos Agroindustrial S/A does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Três Tentos Agroindustrial S/A, (below). Of course, keep in mind that there are other factors to consider, too.
Três Tentos Agroindustrial S/A is not owned by hedge funds. Jm Participações Ltda. is currently the largest shareholder, with 14% of shares outstanding. Ald Holding E Participações Ltda. is the second largest shareholder owning 14% of common stock, and Maria Dumoncel Hoff holds about 9.7% of the company stock. Additionally, the company's CEO Joao Dumoncel directly holds 8.7% of the total shares outstanding.
Our research also brought to light the fact that roughly 56% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.
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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Três Tentos Agroindustrial S/A
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders maintain a significant holding in Três Tentos Agroindustrial S/A. It has a market capitalization of just R$6.9b, and insiders have R$2.4b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Três Tentos Agroindustrial S/A. 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.
Private Company Ownership
Our data indicates that Private Companies hold 42%, 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:
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.
I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.
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.