• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Institutional investors control 31% of Orizon Valorização de Resíduos S.A. (BVMF:ORVR3) and were rewarded last week after stock increased 8.8%

    Simply Wall St·12/15/2025 09:04:11
    Listen to the news

    Key Insights

    Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

    A look at the shareholders of Orizon Valorização de Resíduos S.A. (BVMF:ORVR3) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 31% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

    And things are looking up for institutional investors after the company gained R$526m in market cap last week. The one-year return on investment is currently 66% and last week's gain would have been more than welcomed.

    Let's delve deeper into each type of owner of Orizon Valorização de Resíduos, beginning with the chart below.

    See our latest analysis for Orizon Valorização de Resíduos

    ownership-breakdown
    BOVESPA:ORVR3 Ownership Breakdown December 15th 2025

    What Does The Institutional Ownership Tell Us About Orizon Valorização de Resíduos?

    Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

    Orizon Valorização de Resíduos already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Orizon Valorização de Resíduos' historic earnings and revenue below, but keep in mind there's always more to the story.

    earnings-and-revenue-growth
    BOVESPA:ORVR3 Earnings and Revenue Growth December 15th 2025

    Orizon Valorização de Resíduos is not owned by hedge funds. With a 10% stake, CEO Milton Pilao Junior is the largest shareholder. With 8.6% and 7.7% of the shares outstanding respectively, Circular Holding S.A. and Ismar Assaly are the second and third largest shareholders. Interestingly, the third-largest shareholder, Ismar Assaly is also a Chairman of the Board, again, indicating strong insider ownership amongst the company's top shareholders.

    On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

    Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

    Insider Ownership Of Orizon Valorização de Resíduos

    The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

    I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

    Our most recent data indicates that insiders own a reasonable proportion of Orizon Valorização de Resíduos S.A.. Insiders own R$1.9b worth of shares in the R$6.5b company. That's quite meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

    General Public Ownership

    The general public-- including retail investors -- own 20% 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.

    Private Equity Ownership

    Private equity firms hold a 11% stake in Orizon Valorização de Resíduos. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

    Private Company Ownership

    We can see that Private Companies own 8.7%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

    Next Steps:

    I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Orizon Valorização de Resíduos has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.

    Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

    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.