If you want to know who really controls CSU Cardsystem SA (BVMF: CARD3), then you will have to look at the composition of its share register. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, âDon’t tell me what you think, tell me what you have in your wallet.
With a market cap of R $ 786 million, CSU Cardsystem is a small cap stock, so it may not be well known to many institutional investors. In the graph below, we can see that institutional investors have bought into the company. We can zoom in on the different ownership groups, to find out more about CSU Cardsystem.
See our latest review for CSU Cardsystem
What does institutional ownership tell us about the CSU card system?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. . We would expect most businesses to have some institutions listed, especially if they are growing.
We can see that CSU Cardsystem has institutional investors; and they own a large portion of the company’s stock. This implies that analysts working for these institutions have reviewed the title and appreciate it. But like everyone else, they could be wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out CSU Cardsystem’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
CSU Cardsystem is not owned by hedge funds. Company CEO Marcos Leite is the largest shareholder with 56% of the shares outstanding. With such a huge stake, we infer that they have significant control over the future of the business. This is generally considered a good sign when insiders own a significant number of company shares, and in this case, we are happy to see a company insider with such skin in the game. and third shareholders hold around 2.2% and 1.5% of the capital.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. While there is some coverage from analysts, the company is likely not widely covered. So he might get more attention, down the track.
Insider ownership of the CSU card system
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
Insider ownership is positive when it indicates that executives think like the real 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 CSU Cardsystem SA. This gives them effective control of the business. This means that they hold R $ 437 million of shares in the company R $ 786 million. It is quite significant. Most would say this is a positive, showing strong alignment with shareholders. You can click here to see if these insiders have bought or sold.
General public property
The general public has a 38% stake in CSU Cardsystem. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. Example: we have spotted 2 warning signs for CSU Cardsystem you must be aware.
Ultimately 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 from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St does not have any position in the mentioned stocks.
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