Qualicorp Consultoria e Corretora de Seguros S.A.'s (BVMF:QUAL3) largest shareholders are individual investors who were rewarded as market cap surged R$104m last week
Key Insights
- Qualicorp Consultoria e Corretora de Seguros' significant individual investors 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 51% ownership
- Institutional ownership in Qualicorp Consultoria e Corretora de Seguros is 11%
To get a sense of who is truly in control of Qualicorp Consultoria e Corretora de Seguros S.A. (BVMF:QUAL3), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual investors with 45% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, individual investors collectively scored the highest last week as the company hit R$650m market cap following a 19% gain in the stock.
In the chart below, we zoom in on the different ownership groups of Qualicorp Consultoria e Corretora de Seguros.
See our latest analysis for Qualicorp Consultoria e Corretora de Seguros
What Does The Institutional Ownership Tell Us About Qualicorp Consultoria e Corretora de Seguros?
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 Qualicorp Consultoria e Corretora de Seguros 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. 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 Qualicorp Consultoria e Corretora de Seguros' historic earnings and revenue below, but keep in mind there's always more to the story.
We note that hedge funds don't have a meaningful investment in Qualicorp Consultoria e Corretora de Seguros. Looking at our data, we can see that the largest shareholder is Rede D'Or São Luiz S.A. with 26% of shares outstanding. In comparison, the second and third largest shareholders hold about 18% and 3.0% of the stock.
On looking further, we found that 51% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Qualicorp Consultoria e Corretora de Seguros
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.
Our data suggests that insiders own under 1% of Qualicorp Consultoria e Corretora de Seguros S.A. in their own names. It has a market capitalization of just R$650m, and the board has only R$2.2m worth of shares in their own names. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
General Public Ownership
The general public-- including retail investors -- own 45% stake in the company, and hence can't easily be ignored. 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 Equity Ownership
With an ownership of 18%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.
Public Company Ownership
It appears to us that public companies own 26% of Qualicorp Consultoria e Corretora de Seguros. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 3 warning signs for Qualicorp Consultoria e Corretora de Seguros (1 shouldn't be ignored!) that you should be aware of before investing here.
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.
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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.