Is Grupo Profuturo, S.A.B. de C.V. (BMV:GPROFUT) Popular Amongst Insiders?

By
Simply Wall St
Published
June 07, 2021
BMV:GPROFUT *
Source: Shutterstock

If you want to know who really controls Grupo Profuturo, S.A.B. de C.V. (BMV:GPROFUT), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

Grupo Profuturo. de isn't enormous, but it's not particularly small either. It has a market capitalization of Mex$18b, which means it would generally expect to see some institutions on the share registry. In the chart below, we can see that institutions don't own many shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Grupo Profuturo. de.

See our latest analysis for Grupo Profuturo. de

ownership-breakdown
BMV:GPROFUT * Ownership Breakdown June 7th 2021

What Does The Institutional Ownership Tell Us About Grupo Profuturo. de?

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.

Less than 5% of Grupo Profuturo. de is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

earnings-and-revenue-growth
BMV:GPROFUT * Earnings and Revenue Growth June 7th 2021

Hedge funds don't have many shares in Grupo Profuturo. de. Alberto Bailleres Gonzalez is currently the company's largest shareholder with 76% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 1.4% of the shares outstanding, followed by an ownership of 0.6% by the third-largest shareholder.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Grupo Profuturo. de

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 information suggests that insiders own more than half of Grupo Profuturo, S.A.B. de C.V.. This gives them effective control of the company. That means they own Mex$13b worth of shares in the Mex$18b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public holds a 22% stake in Grupo Profuturo. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Grupo Profuturo. de better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Grupo Profuturo. de (of which 1 can't be ignored!) you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.

If you decide to trade Grupo Profuturo. de, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted


Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.