Stock Analysis

What Type Of Shareholders Make Up Grupo Rotoplas S.A.B. de C.V.'s (BMV:AGUA) Share Registry?

BMV:AGUA *
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A look at the shareholders of Grupo Rotoplas S.A.B. de C.V. (BMV:AGUA) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

Grupo Rotoplas. de is a smaller company with a market capitalization of Mex$12b, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Grupo Rotoplas. de.

View our latest analysis for Grupo Rotoplas. de

ownership-breakdown
BMV:AGUA * Ownership Breakdown March 4th 2021

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

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.

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. 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 March 4th 2021

Grupo Rotoplas. de is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Grupo Rotoplas. de's case, its Top Key Executive, Carlos Mota Velasco, is the largest shareholder, holding 46% of shares outstanding. Carlos Rojas Aboumrad is the second largest shareholder owning 23% of common stock, and Operadora de Fondos GBM S.A. de C.V holds about 5.9% of the company stock. Interestingly, the second-largest shareholder, Carlos Rojas Aboumrad is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 69% stake.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Grupo Rotoplas. de

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 the majority of Grupo Rotoplas S.A.B. de C.V.. This means they can collectively make decisions for the company. That means they own Mex$8.3b worth of shares in the Mex$12b company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public holds a 11% 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. Take risks for example - Grupo Rotoplas. de has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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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