Do Insiders Own Lots Of Shares In Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada (BMV:CREAL)?

By
Simply Wall St
Published
August 16, 2021
BMV:CREAL *
Source: Shutterstock

A look at the shareholders of Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada (BMV:CREAL) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada is not a large company by global standards. It has a market capitalization of Mex$5.4b, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada.

View our latest analysis for Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada

ownership-breakdown
BMV:CREAL * Ownership Breakdown August 16th 2021

What Does The Institutional Ownership Tell Us About Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada?

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 Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
BMV:CREAL * Earnings and Revenue Growth August 16th 2021

Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada is not owned by hedge funds. Our data shows that Ángel Francisco Romanos Berrondo is the largest shareholder with 24% of shares outstanding. With 6.5% and 5.9% of the shares outstanding respectively, Enrique Saiz Fernandez and Jose Luis Berrondo Avalos are the second and third largest shareholders. Jose Luis Berrondo Avalos, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

After doing some more digging, we found that the top 12 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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 Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada. Insiders have a Mex$2.1b stake in this Mex$5.4b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 46% ownership, the general public have some degree of sway over Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada better, we need to consider many other factors. For example, we've discovered 3 warning signs for Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada (1 can't be ignored!) that you should be aware of before investing here.

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.

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