Owning 74% in Grupo Comercial Chedraui, S.A.B. de C.V. (BMV:CHDRAUIB) means that insiders are heavily invested in the company's future

Key Insights

• Grupo Comercial Chedraui. de's significant insider ownership suggests inherent interests in company's expansion
• Jose Chedraui Obeso owns 74% of the company
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

If you want to know who really controls Grupo Comercial Chedraui, S.A.B. de C.V. (BMV:CHDRAUIB), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 74% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.

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

View our latest analysis for Grupo Comercial Chedraui. de

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

We can see that Grupo Comercial Chedraui. de does have institutional investors; and they hold a good portion of the company's stock. 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 74% of shares outstanding. For context, the second largest shareholder holds about 2.9% of the shares outstanding, followed by an ownership of 1.5% by the third-largest shareholder.

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 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.

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. That means insiders have a very meaningful Mex$94b stake in this Mex$127b business. 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

The general public, who are usually individual investors, hold a 17% stake in 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.