Dexxos Participações SA (BVMF:DEXP3) 18% gain last week benefited both retail investors who hold 45% and insiders

If you want to know who actually controls Dexxos Participações SA (BVMF:DEXP3), then you will have to look at the composition of its share register. We can see that individual investors hold the lion’s share of the company with 45% ownership. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

While retail investors were the group that benefited the most from last week’s 98 million reais market capitalization gain, insiders also had a 41% share of those profits.

Let’s take a closer look at what different types of shareholders can tell us about Dexxos Participações.

BOVESPA: DEXP3 Ownership Breakdown October 7, 2022

What does institutional ownership tell us about Dexxos Participações?

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 hold a significant share of Dexxos Participações. 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. 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. It is therefore worth checking the past earnings trajectory of Dexxos Participações (below). Of course, keep in mind that there are other factors to consider as well.

BOVESPA: DEXP3 Profit and Revenue Growth October 7, 2022

Dexxos Participações is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Marcelo Pradez de Faria Stallone with 8.0% of the shares outstanding. With respectively 7.6% and 7.0% of the outstanding shares, Imobiliária Mondesir S/A and Eduardo de Faria are the second and third shareholders.

Looking at the shareholder register, we can see that 50% of the ownership is controlled by the 12 major shareholders, which means that no shareholder has a controlling interest in the ownership.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. Although there is some analyst coverage, the company is probably not widely covered. So it could attract more attention, on the track.

Insider ownership of Dexxos Participações

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.

It seems that insiders hold a significant share of Dexxos Participações SA. Insiders have a stake of 269 million reais in this 656 million reais venture. This may suggest that the founders still own a lot of shares. You can click here to see if they bought or sold.

General public property

The general public, including retail investors, owns 45% of the company’s shares and therefore cannot be easily ignored. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.

Private Company Ownership

Our data indicates that private companies hold 7.6% of the company’s shares. It might be worth exploring this further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Example: we have identified 4 warning signs for Dexxos Participações you should be aware, and 2 of them are a bit of a concern.

But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

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