Stock Analysis

Owning 76% in Grupo Comercial Chedraui, S.A.B. de C.V. (BMV:CHDRAUIB) means that insiders are heavily invested in the company's future

BMV:CHDRAUI B
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Key Insights

  • Grupo Comercial Chedraui. de's significant insider ownership suggests inherent interests in company's expansion
  • The largest shareholder of the company is Jose Chedraui Obeso with a 76% stake
  • 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. With 76% stake, individual insiders 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.

So, insiders of Grupo Comercial Chedraui. de have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.

Let's take a closer look to see what the different types of shareholders can tell us about Grupo Comercial Chedraui. de.

Check out our latest analysis for Grupo Comercial Chedraui. de

ownership-breakdown
BMV:CHDRAUI B Ownership Breakdown March 26th 2024

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.

Grupo Comercial Chedraui. de already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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.

earnings-and-revenue-growth
BMV:CHDRAUI B Earnings and Revenue Growth March 26th 2024

We note that hedge funds don't have a meaningful investment in Grupo Comercial Chedraui. de. From our data, we infer that the largest shareholder is Jose Chedraui Obeso (who also holds the title of Top Key Executive) with 76% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. BlackRock, Inc. is the second largest shareholder owning 2.0% of common stock, and The Vanguard Group, Inc. holds about 1.9% of the company stock.

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. 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

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

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$96b worth of shares in the Mex$126b 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

The general public, who are usually individual investors, hold a 15% 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:

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 like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Grupo Comercial Chedraui. de is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.