Stock Analysis

Individual investors are Grupo Hotelero Santa Fe, S.A.B. de C.V.'s (BMV:HOTEL) biggest owners and were hit after market cap dropped Mex$286m

BMV:HOTEL *
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Key Insights

  • Significant control over Grupo Hotelero Santa Fe. de by individual investors implies that the general public has more power to influence management and governance-related decisions
  • 42% of the business is held by the top 7 shareholders
  • Insiders own 40% of Grupo Hotelero Santa Fe. de

A look at the shareholders of Grupo Hotelero Santa Fe, S.A.B. de C.V. (BMV:HOTEL) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 58% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 10.0% decrease in the stock price last week, individual investors suffered the most losses, but insiders who own 40% stock also took a hit.

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

Check out our latest analysis for Grupo Hotelero Santa Fe. de

ownership-breakdown
BMV:HOTEL * Ownership Breakdown December 12th 2024

What Does The Institutional Ownership Tell Us About Grupo Hotelero Santa Fe. 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.

Institutions have a very small stake in Grupo Hotelero Santa Fe. de. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

earnings-and-revenue-growth
BMV:HOTEL * Earnings and Revenue Growth December 12th 2024

Grupo Hotelero Santa Fe. de is not owned by hedge funds. Jorge Perez is currently the largest shareholder, with 29% of shares outstanding. With 11% and 1.2% of the shares outstanding respectively, Pablo Martinez and Muza Gestion De Activos Sgiic SA are the second and third largest shareholders.

On studying our ownership data, we found that 7 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Grupo Hotelero Santa Fe. 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.

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.

Our information suggests that insiders maintain a significant holding in Grupo Hotelero Santa Fe, S.A.B. de C.V.. It has a market capitalization of just Mex$2.7b, and insiders have Mex$1.1b worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 58% of Grupo Hotelero Santa Fe. de shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Grupo Hotelero Santa Fe. de (at least 1 which makes us a bit uncomfortable) , and understanding them should be part of your investment process.

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.

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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.