How Much Of Banco del Bajío, S.A., Institución de Banca Múltiple (BMV:BBAJIOO) Do Insiders Own?

The big shareholder groups in Banco del Bajío, S.A., Institución de Banca Múltiple (BMV:BBAJIOO) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Banco del Bajío Institución de Banca Múltiple has a market capitalization of Mex$30b, so we would expect some institutional investors to have noticed the stock. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Banco del Bajío Institución de Banca Múltiple.

Check out our latest analysis for Banco del Bajío Institución de Banca Múltiple

What Does The Institutional Ownership Tell Us About Banco del Bajío Institución de Banca Múltiple?

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 Banco del Bajío Institución de Banca Múltiple. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Banco del Bajío Institución de Banca Múltiple's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Banco del Bajío Institución de Banca Múltiple. Our data shows that Salvador Oñate Ascencio is the largest shareholder with 22% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.1% and 4.3% of the stock. Rolando Uziel Candiotti, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

On further inspection, we found that more than half the company's shares are owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Banco del Bajío Institución de Banca Múltiple

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.

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 a reasonable proportion of Banco del Bajío, S.A., Institución de Banca Múltiple. It has a market capitalization of just Mex$30b, and insiders have Mex$12b worth of shares in their own names. That's quite significant. 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 holds a 42% stake in Banco del Bajío Institución de Banca Múltiple. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Banco del Bajío Institución de Banca Múltiple better, we need to consider many other factors. Take risks for example - Banco del Bajío Institución de Banca Múltiple has 2 warning signs (and 1 which is potentially serious) we think you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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. 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.
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