Public companies who have a significant stake must be disappointed along with institutions after Empresa Nacional de Telecomunicaciones S.A.’s (SNSE:ENTEL) market cap dropped by CL$57b


To get a sense of who really controls Empresa Nacional de Telecomunicaciones SA (SNSE:ENTEL), it is important to understand the company’s ownership structure. And the group holding the biggest piece of the pie are public companies with a 55% stake. That is, the group will benefit most when the stock goes up (or lose most when it goes down).

While institutions, which own 34%, came under pressure after the market cap fell to CL$815 billion last week, listed companies suffered the most losses.

Let’s dive deeper into each Empresa Nacional de Telecomunicaciones owner type, starting with the table below.

If you’re not interested in researching ENTEL’s ownership structure, we have one free List of interesting investment ideas that might inspire you for your next investment!

property breakdown
SNSE: ENTEL ownership breakdown September 24, 2022

What does the institutional ownership tell us about the Empresa Nacional de Telecomunicaciones?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they’re often more excited about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially as they grow.

Empresa Nacional de Telecomunicaciones already has institutions in the share register. In fact, they own a respectable stake in the company. This suggests some credibility among professional investors. But we can’t rely on that alone, as institutions sometimes make bad investments, just like everyone else. When multiple institutions own a stock, there is always a risk that they will find themselves in a “crowded trade”. When such a trade goes awry, multiple parties can compete to sell shares quickly. This risk is higher in a company without a growth history. You can see Empresa Nacional de Telecomunicaciones historical earnings and earnings below but remember there is still more to be told.

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Profit and Revenue Growth
SNSE:ENTEL Earnings and Revenue Growth September 24, 2022

Hedge funds don’t hold many shares in Empresa Nacional de Telecomunicaciones. Almendral SA is currently the company’s largest shareholder with 55% of the outstanding shares. With such a large stake in ownership, we conclude they have significant control over the future of the company. Meanwhile, the second- and third-largest shareholders hold 3.9% and 3.5% of the outstanding shares, respectively.

Studying institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be done by studying analyst sentiment. There are a fair number of analysts covering the stock, so it might be helpful to get their overall view on the future.

Insider ownership of Empresa Nacional de Telecomunicaciones

The definition of corporate insider can be subjective and varies by jurisdiction. Our data reflects individual insiders and captures at least board members. Management runs the business, but the CEO is accountable to the board even if he or she is a member.

In general, I think insider ownership is a good thing. In some cases, however, it becomes more difficult for other shareholders to hold the board accountable for decisions.

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We note that our data does not show any directors who personally hold stock. Because we don’t pick up insider ownership, we may have missing data. Therefore, it would be interesting to evaluate CEO compensation and tenure here.

General Public Property

Empresa Nacional de Telecomunicaciones has some influence from the general public, which consists mainly of individual investors, with a stake of 11%. While this ownership size is substantial, it may not be enough to change company policy if the decision is not aligned with other major shareholders.

ownership of public companies

It seems to us that public companies own 55% of Empresa Nacional de Telecomunicaciones. It’s hard to say for sure, but this suggests they may have intertwined business interests. This could be a strategic investment, so it’s worth watching for ownership changes in this area.

Next Steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand Empresa Nacional de Telecomunicaciones we have to consider many other factors. For example risks. Every company has them and we discovered them 4 warning signs for Empresa Nacional de Telecomunicaciones (2 of which are worrying!) that you should know.

If you’d rather learn what analysts are predicting for future growth, don’t miss this one free Analyst forecast report.

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Note: The figures in this article are calculated using data for the last twelve months, relating to the 12-month period ending on the last date of the month to which the financial statements are dated. This may not tally with the annual report figures for the full year.

This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

The assessment is complex, but we help to simplify it.

find out if Empresa National de Telecomunicaciones may be over or under priced by reviewing our comprehensive analysis which includes the following Fair Value Estimates, Risks and Warnings, Dividends, Insider Trading and Financial Health.

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