Empresas CMPC SA (SNSE:CMPC) share price fell 6.3% last week; private companies would not be happy

To get an idea of ​​who actually controls Empresas CMPC SA (SNSE:CMPC), it is important to understand the ownership structure of the company. With 36% of the capital, private companies hold the maximum shares in the company. In other words, the group faces the maximum upside potential (or downside risk).

And after last week’s 6.3% share price decline, private companies suffered the most losses.

In the table below, we zoom in on the different ownership groups of Empresas CMPC.

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SNSE: Distribution of ownership CMPC November 17, 2022

What does institutional ownership tell us about Empresas CMPC?

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 Empresas CMPC has institutional investors; and they own a good part of the shares of the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Empresas CMPC’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

earnings-and-revenue-growth
SNSE: WACC earnings and revenue growth November 17, 2022

Hedge funds don’t have a lot of shares in Empresas CMPC. The company’s largest shareholder is Matte Group, with a 33% stake. In comparison, the second and third shareholders hold around 19% and 2.3% of the shares.

A more detailed study of the shareholder register showed us that 2 of the main shareholders hold a considerable stake in the company, via their 52% stake.

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. A number of analysts cover the stock, so you can look at growth forecasts quite easily.

Empresas CMPC Insider Ownership

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

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.

We note that our data does not show any board members personally owning shares. Not all jurisdictions have the same rules regarding insider ownership disclosure, and we may be missing something here. So you can click here to learn more about the CEO.

General public property

The general public, including retail investors, owns 31% of the company’s shares and therefore cannot be easily ignored. While that size of ownership might not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Private Company Ownership

It seems that private companies hold 36% of the shares of Empresas CMPC. Private companies can be related parties. Sometimes insiders have an interest in a public company through an equity stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.

Ownership of a public company

We can see that public companies hold 19% of Empresas CMPC shares outstanding. We cannot be sure, but it is quite possible that it is a strategic issue. Businesses can be similar or work together.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. To do this, you need to find out about the 3 warning signs we spotted with Empresas CMPC (including 1 that makes us a little uncomfortable).

If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.

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 the financial statements are dated. This may not be consistent with the annual report figures for the full year.

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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.

Karen J. Nelson