Retail investors are among the largest shareholders in Regional SAB de CV (BMV:RA) and have been hurt after prices fell 10% last week
To get an idea of who really controls Regional SAB de CV (BMV:RA), it is important to understand the ownership structure of the company. We can see that individual investors hold the lion’s share of the company with 54% ownership. That is, the group will benefit the most if the stock goes up (or loses the most if there is a downturn).
While insiders, who own 24% of the shares, were not spared by the drop in market capitalization of 4.7 billion Mexican dollars last week, individual investors as a group suffered the maximum losses.
In the table below, we zoom in on the different ownership groups of Regional. of.
Check out our latest analysis for Regional. of
What does institutional ownership tell us about Regional. of ?
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 sizeable share of Regional. of. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. It is therefore worth watching Regional. the earnings history of below. Of course, the future is what really matters.
Hedge funds don’t have a lot of shares in Regional. of. The main shareholder of the company is Manuel Gerardo Rivero Santos, with a 10% stake. Meanwhile, the second and third largest shareholders hold 9.4% and 3.0% of the outstanding shares, respectively. Interestingly, the bottom two of the top three shareholders also hold the title of Top Key Executive and Board Member, respectively, suggesting that these insiders have a personal stake in the company.
Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, which means that the company’s shares are widely distributed and there is no dominant shareholder.
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.
Regional Insider Property. of
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders maintain a significant stake in Regional SAB de CV. Insiders hold 9.8 billion Mexican dollars worth of shares in the 41 billion Mexican dollars company. It is quite significant. Good to see this level of investment. You can check here if these insiders have bought recently.
General public property
The general public, who are typically individual investors, hold a substantial 54% stake in Regional. de, suggesting that this is a fairly popular stock. This level of ownership gives mainstream investors some power to influence key policy decisions such as board composition, executive compensation, and dividend payout ratio.
Next steps:
While it is worth considering the different groups that own a business, there are other, even more important factors. For example, we have identified 1 warning sign for Regional. of which you should be aware of.
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
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.
Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.
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.