Is Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada's (BMV:CREAL) Shareholder Ownership Skewed Towards Insiders?

If you want to know who really controls Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada (BMV:CREAL), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. 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 a smaller company with a market capitalization of Mex$4.4b, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more 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

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

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

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 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 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.

Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada is not owned by hedge funds. The company's CEO Ángel Francisco Romanos Berrondo is the largest shareholder with 23% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.4% and 5.8% of the stock.

We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada. Insiders own Mex$1.6b worth of shares in the Mex$4.4b company. I 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

With a 41% 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:

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. Be aware that Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada is showing 3 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

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. 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.
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