Stock Analysis

Individual investors who hold 60% of Bolsa Mexicana de Valores, S.A.B. de C.V. (BMV:BOLSAA) gained 5.4%, institutions profited as well

BMV:BOLSA A
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Key Insights

  • Significant control over Bolsa Mexicana de Valores. de by individual investors implies that the general public has more power to influence management and governance-related decisions
  • A total of 25 investors have a majority stake in the company with 38% ownership
  • Institutional ownership in Bolsa Mexicana de Valores. de is 40%

To get a sense of who is truly in control of Bolsa Mexicana de Valores, S.A.B. de C.V. (BMV:BOLSAA), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 60% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Individual investors gained the most after market cap touched Mex$20b last week, while institutions who own 40% also benefitted.

In the chart below, we zoom in on the different ownership groups of Bolsa Mexicana de Valores. de.

View our latest analysis for Bolsa Mexicana de Valores. de

ownership-breakdown
BMV:BOLSA A Ownership Breakdown January 30th 2024

What Does The Institutional Ownership Tell Us About Bolsa Mexicana de Valores. 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.

As you can see, institutional investors have a fair amount of stake in Bolsa Mexicana de Valores. de. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Bolsa Mexicana de Valores. de, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
BMV:BOLSA A Earnings and Revenue Growth January 30th 2024

We note that hedge funds don't have a meaningful investment in Bolsa Mexicana de Valores. de. Our data shows that FMR LLC is the largest shareholder with 4.8% of shares outstanding. For context, the second largest shareholder holds about 4.2% of the shares outstanding, followed by an ownership of 4.1% by the third-largest shareholder.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Bolsa Mexicana de Valores. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 60% stake in Bolsa Mexicana de Valores. de, suggesting it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for Bolsa Mexicana de Valores. de you should be aware of.

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.

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

Find out whether Bolsa Mexicana de Valores. 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.