Grupo Comercial Chedraui, S.A.B. de C.V.'s (BMV:CHDRAUIB): Top Key Executive Jose Chedraui Obeso is the most bullish insider, and their stock value gained 3.0% last week

Key Insights

• Insiders appear to have a vested interest in Grupo Comercial Chedraui. de's growth, as seen by their sizeable ownership
• Jose Chedraui Obeso owns 76% of the company
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

Every investor in Grupo Comercial Chedraui, S.A.B. de C.V. (BMV:CHDRAUIB) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 76% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit Mex$135b market cap following a 3.0% gain in the stock.

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

View our latest analysis for Grupo Comercial Chedraui. de

What Does The Institutional Ownership Tell Us About Grupo Comercial Chedraui. 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.

As you can see, institutional investors have a fair amount of stake in Grupo Comercial Chedraui. de. 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. 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 Grupo Comercial Chedraui. de's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Grupo Comercial Chedraui. de. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Grupo Comercial Chedraui. de's case, its Top Key Executive, Jose Chedraui Obeso, is the largest shareholder, holding 76% of shares outstanding. In comparison, the second and third largest shareholders hold about 2.1% and 1.5% of the stock.

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 Comercial Chedraui. 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.

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.

It seems that insiders own more than half the Grupo Comercial Chedraui, S.A.B. de C.V. stock. This gives them a lot of power. Insiders own Mex$102b worth of shares in the Mex$135b company. That's extraordinary! Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Grupo Comercial Chedraui. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.