Ambipar Participações e Empreendimentos S.A.'s (BVMF:AMBP3) most bullish insider is CEO Tercio Junior, and their holdings value went up by 15% last week
Key Insights
- Insiders appear to have a vested interest in Ambipar Participações e Empreendimentos' growth, as seen by their sizeable ownership
- 53% of the business is held by the top 2 shareholders
- Institutions own 17% of Ambipar Participações e Empreendimentos
A look at the shareholders of Ambipar Participações e Empreendimentos S.A. (BVMF:AMBP3) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 44% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, insiders were the biggest beneficiaries of last week’s 15% gain.
In the chart below, we zoom in on the different ownership groups of Ambipar Participações e Empreendimentos.
See our latest analysis for Ambipar Participações e Empreendimentos
What Does The Institutional Ownership Tell Us About Ambipar Participações e Empreendimentos?
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.
As you can see, institutional investors have a fair amount of stake in Ambipar Participações e Empreendimentos. 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. 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 Ambipar Participações e Empreendimentos, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Ambipar Participações e Empreendimentos. Looking at our data, we can see that the largest shareholder is the CEO Tercio Junior with 44% of shares outstanding. With 9.0% and 7.7% of the shares outstanding respectively, Trustee Distribuidora De Titulos E Valores Mobiliarios Ltda and Plural Investimentos Gestão de Recursos Ltda are the second and third largest shareholders.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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 is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Ambipar Participações e Empreendimentos
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that insiders maintain a significant holding in Ambipar Participações e Empreendimentos S.A.. Insiders own R$264m worth of shares in the R$600m company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 39% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
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. To that end, you should be aware of the 1 warning sign we've spotted with Ambipar Participações e Empreendimentos .
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.