With 52% ownership, Gruma, S.A.B. de C.V. (BMV:GRUMAB) insiders have a lot riding on the company's future

Key Insights

• Gruma. de's significant insider ownership suggests inherent interests in company's expansion
• 52% of the company is held by a single shareholder (Graciela Moreno Hernandez)
• Institutions own 25% of Gruma. de

If you want to know who really controls Gruma, S.A.B. de C.V. (BMV:GRUMAB), then you'll have to look at the makeup of its share registry. With 52% stake, individual insiders 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).

So it follows, every decision made by insiders of Gruma. de regarding the company's future would be crucial to them.

In the chart below, we zoom in on the different ownership groups of Gruma. de.

Check out our latest analysis for Gruma. de

What Does The Institutional Ownership Tell Us About Gruma. de?

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.

As you can see, institutional investors have a fair amount of stake in Gruma. de. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Gruma. de, (below). Of course, keep in mind that there are other factors to consider, too.

Gruma. de is not owned by hedge funds. Graciela Moreno Hernandez is currently the company's largest shareholder with 52% of shares outstanding. This implies that they have majority interest control of the future of the company. With 3.7% and 3.5% of the shares outstanding respectively, Artisan Partners Limited Partnership and BlackRock, Inc. are the second and third largest shareholders.

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. 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 Gruma. de

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems that insiders own more than half the Gruma, S.A.B. de C.V. stock. This gives them a lot of power. That means insiders have a very meaningful Mex$60b stake in this Mex$116b business. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

The general public, who are usually individual investors, hold a 23% stake in Gruma. de. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Gruma. de .

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.

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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.