What does the ownership structure of Aeris Indústria e Comércio de Equipamentos para Geração de Energia SA (BVMF:AERI3) look like?

A look at the shareholders of Aeris Indústria e Comércio de Equipamentos para Geração de Energia SA (BVMF:AERI3) can tell us which group is the most powerful. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Warren Buffett said he likes “a business with enduring competitive advantages that is led by capable, owner-oriented people.” So it’s nice to see some insider ownership, as it may suggest management is owner-driven.

Aeris Indústria e Comércio de Equipamentos para Geração de Energia is a small company with a market capitalization of R$2.4 billion, so it may still fly under the radar of many institutional investors. Our analysis of societal ownership below shows that institutions own shares in society. Let’s dig deeper into each type of owner, to learn more about Aeris Indústria e Comércio de Equipamentos para Geração de Energia.

Check out our latest analysis for Aeris Indústria e Comércio de Equipamentos para Geração de Energia

BOVESPA: Distribution of AERI3 property June 12, 2022

What does institutional ownership tell us about Aeris Indústria e Comércio de Equipamentos para Geração de Energia?

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 Aeris Indústria e Comércio de Equipamentos para Geração de Energia has institutional investors; and they own a good part of the shares of the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. It is therefore worth taking a look at the earnings history of Aeris Indústria e Comércio de Equipamentos para Geração de Energia below. Of course, the future is what really matters.

earnings-and-revenue-growth
BOVESPA: AERI3 Growth in results and turnover June 12, 2022

Hedge funds do not have many shares in Aeris Indústria e Comércio de Equipamentos para Geração de Energia. The main shareholder of the company is Alexandre Funari Negrão, with a 50% stake. With such a stake in ownership, we infer that they have significant control over the future of the business. The second and third largest shareholders are Vera Sarnes Negrão and Alexandre Sarnes Negrao, with an equal number of shares to their names at 3.6%. Additionally, CEO Bruno Vilela Cunha owns 2.1% of the company’s shares.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.

Insider ownership of Aeris Indústria e Comércio de Equipamentos para Geração de Energia

The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our information suggests that insiders own more than half of Aeris Indústria e Comércio de Equipamentos para Geração de Energia SA. This gives them effective control of the business. So they have a stake of R$1.7 billion in this R$2.4 billion business. Good to see this level of investment. You can check here if these insiders have bought recently.

General public property

With a 12% stake, the general public, consisting mainly of individual investors, has some influence over Aeris Indústria e Comércio de Equipamentos para Geração de Energia. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Aeris Indústria e Comércio de Equipamentos para Geração de Energia, we must take into account many other factors. For example, we found 3 warning signs for Aeris Indústria e Comércio de Equipamentos para Geração de Energia (1 is concerning!) that you should be aware of before investing here.

At the end of the day the future is the most important. You can access this free analyst forecast report for the company.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Comments are closed.