Grupo Rotoplas S.A.B. de C.V.'s (BMV:AGUA) last week's 11% decline must have disappointed retail investors who have a significant stake

Key Insights

• The considerable ownership by retail investors in Grupo Rotoplas. de indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 10 shareholders
• 38% of Grupo Rotoplas. de is held by insiders

If you want to know who really controls Grupo Rotoplas S.A.B. de C.V. (BMV:AGUA), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 48% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While the holdings of retail investors took a hit after last week’s 11% price drop, insiders with their 38% also suffered.

Let's delve deeper into each type of owner of Grupo Rotoplas. de, beginning with the chart below.

View our latest analysis for Grupo Rotoplas. de

What Does The Institutional Ownership Tell Us About Grupo Rotoplas. 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.

Grupo Rotoplas. de 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. 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 Grupo Rotoplas. de, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Grupo Rotoplas. de. Looking at our data, we can see that the largest shareholder is the CEO Carlos Rojas Aboumrad with 21% of shares outstanding. With 12% and 5.0% of the shares outstanding respectively, Carlos Roberto Mota Velasco and Operadora de Fondos GBM S.A. de C.V are the second and third largest shareholders. Interestingly, the second-largest shareholder, Carlos Roberto Mota Velasco is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

We also observed that the top 10 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 Grupo Rotoplas. de

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 information suggests that insiders maintain a significant holding in Grupo Rotoplas S.A.B. de C.V.. Insiders own Mex$2.5b worth of shares in the Mex$6.7b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 48% stake in Grupo Rotoplas. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Grupo Rotoplas. de better, we need to consider many other factors. For instance, we've identified 4 warning signs for Grupo Rotoplas. de (2 are a bit unpleasant) that you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.