Grupo KUO, S.A.B. de C.V.'s (BMV:KUOB) market cap dropped Mex$875m last week; Individual investors bore the brunt

Key Insights

• The considerable ownership by individual investors in Grupo KUO. de indicates that they collectively have a greater say in management and business strategy
• The top 3 shareholders own 52% of the company
• Insiders own 33% of Grupo KUO. de

A look at the shareholders of Grupo KUO, S.A.B. de C.V. (BMV:KUOB) can tell us which group is most powerful. With 38% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders who own 33% came under pressure after market cap dropped to Mex$18b last week,individual investors took the most losses.

In the chart below, we zoom in on the different ownership groups of Grupo KUO. de.

Check out our latest analysis for Grupo KUO. de

What Does The Institutional Ownership Tell Us About Grupo KUO. 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 KUO. 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 KUO. de's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Grupo KUO. de. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Grupo KUO. de's case, its President, Fernando Senderos Mestre, is the largest shareholder, holding 26% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 18% and 8.1%, of the shares outstanding, respectively.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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

Insider Ownership Of Grupo KUO. de

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of Grupo KUO, S.A.B. de C.V.. Insiders own Mex$5.9b worth of shares in the Mex$18b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public-- including retail investors -- own 38% stake in the company, and hence can't easily be ignored. 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 KUO. de better, we need to consider many other factors. Be aware that Grupo KUO. de is showing 5 warning signs in our investment analysis , and 2 of those are concerning...

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. 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.