The considerable ownership by public companies in Eve Holding indicates that they collectively have a greater say in management and business strategy
Embraer S.A. owns 83% of the company
Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
Every investor in Eve Holding, Inc. (NYSE:EVEX) should be aware of the most powerful shareholder groups. With 83% stake, public companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And individual investors on the other hand have a 11% ownership in the company.
Let's take a closer look to see what the different types of shareholders can tell us about Eve Holding.
What Does The Institutional Ownership Tell Us About Eve Holding?
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 Eve Holding does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Eve Holding's historic earnings and revenue below, but keep in mind there's always more to the story.
NYSE:EVEX Earnings and Revenue Growth January 29th 2025
We note that hedge funds don't have a meaningful investment in Eve Holding. The company's largest shareholder is Embraer S.A., with ownership of 83%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. BANCO BRADESCO S.A, Asset Management Arm is the second largest shareholder owning 3.0% of common stock, and The Vanguard Group, Inc. holds about 1.0% of the company stock.
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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Eve Holding
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own less than 1% of Eve Holding, Inc.. Keep in mind that it's a big company, and the insiders own US$2.6m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public-- including retail investors -- own 11% 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.
Public Company Ownership
We can see that public companies hold 83% of the Eve Holding shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Eve Holding better, we need to consider many other factors. Be aware that Eve Holding is showing 3 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this freereport on analyst forecasts.
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.
