Cyrela Brazil Realty S.A. Empreendimentos e Participações (BVMF:CYRE3) surges 5.6%; individual investors who own 38% shares profited along with institutions

Key Insights

• Cyrela Brazil Realty Empreendimentos e Participações' significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 13 investors have a majority stake in the company with 50% ownership
• Insider ownership in Cyrela Brazil Realty Empreendimentos e Participações is 24%

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To get a sense of who is truly in control of Cyrela Brazil Realty S.A. Empreendimentos e Participações (BVMF:CYRE3), it is important to understand the ownership structure of the business. With 38% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors gained the most after market cap touched R$9.7b last week, while institutions who own 32% also benefitted.

Let's take a closer look to see what the different types of shareholders can tell us about Cyrela Brazil Realty Empreendimentos e Participações.

View our latest analysis for Cyrela Brazil Realty Empreendimentos e Participações

What Does The Institutional Ownership Tell Us About Cyrela Brazil Realty Empreendimentos e Participações?

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.

We can see that Cyrela Brazil Realty Empreendimentos e Participações does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Cyrela Brazil Realty Empreendimentos e Participações, (below). Of course, keep in mind that there are other factors to consider, too.

Cyrela Brazil Realty Empreendimentos e Participações is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Elie Horn with 24% of shares outstanding. With 6.0% and 5.4% of the shares outstanding respectively, Erirenor Sociedad Anonima and BlackRock, Inc. are the second and third largest shareholders.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 13 shareholders, meaning that no single shareholder has a majority interest in the ownership.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. 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 Cyrela Brazil Realty Empreendimentos e Participações

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 Cyrela Brazil Realty S.A. Empreendimentos e Participações. Insiders own R$2.3b worth of shares in the R$9.7b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 38% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Cyrela Brazil Realty Empreendimentos e Participações. 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

We can see that Private Companies own 6.0%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Cyrela Brazil Realty Empreendimentos e Participações is showing 1 warning sign in our investment analysis , you should know about...

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.