Stock Analysis

Retail investors among Grupo Rotoplas S.A.B. de C.V.'s (BMV:AGUA) largest stockholders and were hit after last week's 10% price drop

BMV:AGUA *
Source: Shutterstock

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
  • A total of 11 investors have a majority stake in the company with 51% ownership
  • Insiders own 38% of Grupo Rotoplas. de

To get a sense of who is truly in control of Grupo Rotoplas S.A.B. de C.V. (BMV:AGUA), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are retail investors 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 insiders, who own 38% shares weren’t spared from last week’s Mex$1.1b market cap drop, retail investors as a group suffered the maximum losses

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

ownership-breakdown
BMV:AGUA * Ownership Breakdown November 15th 2024

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 implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Grupo Rotoplas. de's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
BMV:AGUA * Earnings and Revenue Growth November 15th 2024

We note that hedge funds don't have a meaningful investment in Grupo Rotoplas. de. The company's CEO Carlos Rojas Aboumrad is the largest shareholder with 21% of shares outstanding. For context, the second largest shareholder holds about 12% of the shares outstanding, followed by an ownership of 5.0% by the third-largest shareholder. 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.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 11 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Grupo Rotoplas S.A.B. de C.V.. Insiders have a Mex$3.6b stake in this Mex$9.5b business. 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. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. To that end, you should learn about the 4 warning signs we've spotted with Grupo Rotoplas. de (including 1 which can't be ignored) .

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.