Stock Analysis

What Percentage Of Internacional de Cerámica, S.A.B. de C.V. (BMV:CERAMICB) Shares Do Insiders Own?

BMV:CERAMIC B
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A look at the shareholders of Internacional de Cerámica, S.A.B. de C.V. (BMV:CERAMICB) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

Internacional de Cerámica. de is a smaller company with a market capitalization of Mex$6.2b, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Internacional de Cerámica. de.

View our latest analysis for Internacional de Cerámica. de

ownership-breakdown
BMV:CERAMIC B Ownership Breakdown January 6th 2021

What Does The Institutional Ownership Tell Us About Internacional de Cerámica. 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.

We can see that Internacional de Cerámica. de does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Internacional de Cerámica. de's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
BMV:CERAMIC B Earnings and Revenue Growth January 6th 2021

Hedge funds don't have many shares in Internacional de Cerámica. de. Our data shows that Sylvia Almeida Garcia is the largest shareholder with 7.6% of shares outstanding. The second and third largest shareholders are Norma de Champion and Diana E. Almeida Garcia, with an equal amount of shares to their name at 7.6%. Diana E. Almeida Garcia, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. Furthermore, CEO Victor David Almeida Garcia is the owner of 7.6% of the company's shares.

A deeper look at our ownership data shows that the top 7 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Internacional de Cerámica. 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 most recent data indicates that insiders own a reasonable proportion of Internacional de Cerámica, S.A.B. de C.V.. Insiders have a Mex$1.9b stake in this Mex$6.2b 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 -- mostly retail investors -- own 56% of Internacional de Cerámica. de. With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.

Private Company Ownership

It seems that Private Companies own 5.0%, of the Internacional de Cerámica. de stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

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 learn about the 4 warning signs we've spotted with Internacional de Cerámica. de (including 2 which are significant) .

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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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