Wal-Mart de México, S.A.B. de C.V.'s (BMV:WALMEX) top owners are public companies with 71% stake, while 16% is held by individual investors

Key Insights

• Significant control over Wal-Mart de México. de by public companies implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is Walmart Inc. with a 71% stake
• 13% of Wal-Mart de México. de is held by Institutions

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If you want to know who really controls Wal-Mart de México, S.A.B. de C.V. (BMV:WALMEX), then you'll have to look at the makeup of its share registry. We can see that public companies own the lion's share in the company with 71% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, individual investors make up 16% of the company’s shareholders.

Let's take a closer look to see what the different types of shareholders can tell us about Wal-Mart de México. de.

Check out our latest analysis for Wal-Mart de México. de

What Does The Institutional Ownership Tell Us About Wal-Mart de México. 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.

Wal-Mart de México. 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 Wal-Mart de México. 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 Wal-Mart de México. de. Walmart Inc. is currently the company's largest shareholder with 71% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. BlackRock, Inc. is the second largest shareholder owning 2.2% of common stock, and The Vanguard Group, Inc. holds about 1.2% of the company stock.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Wal-Mart de México. 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.

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.

We note our data does not show any board members holding shares, personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public, who are usually individual investors, hold a 16% stake in Wal-Mart de México. de. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

Public companies currently own 71% of Wal-Mart de México. de stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 1 warning sign for Wal-Mart de México. de that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.