A look at the shareholders of Cury Construtora e Incorporadora S.A. (BVMF:CURY3) can tell us which group is most powerful. The group holding the most number of shares in the company, around 26% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).
Following a 12% decrease in the stock price last week, retail investors suffered the most losses, but institutions who own 23% stock also took a hit.
Let's take a closer look to see what the different types of shareholders can tell us about Cury Construtora e Incorporadora.
View our latest analysis for Cury Construtora e Incorporadora
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 Cury Construtora e Incorporadora does have institutional investors; and they hold a good portion of the company's stock. 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 Cury Construtora e Incorporadora's 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 Cury Construtora e Incorporadora. Looking at our data, we can see that the largest shareholder is the CEO Fabio Cury with 20% of shares outstanding. With 16% and 13% of the shares outstanding respectively, Cyrela Brazil Realty S.A. Empreendimentos e Participações and Cury Empreendimentos Imobiliários Ltda. are the second and third largest shareholders.
On looking further, we found that 50% of the shares are owned by the top 4 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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
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 a reasonable proportion of Cury Construtora e Incorporadora S.A.. It is very interesting to see that insiders have a meaningful R$2.0b stake in this R$9.4b business. 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.
With a 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Cury Construtora e Incorporadora. 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.
Our data indicates that Private Companies hold 13%, 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.
We can see that public companies hold 16% of the Cury Construtora e Incorporadora shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
It's always worth thinking about the different groups who own shares in a company. But to understand Cury Construtora e Incorporadora better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Cury Construtora e Incorporadora you should be aware of.
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.