Value Grupo Financiero, S.A.B. de C.V.'s (BMV:VALUEGFO) stock price dropped 9.5% last week; individual investors would not be happy

Key Insights

• The considerable ownership by individual investors in Value Grupo Financiero. de indicates that they collectively have a greater say in management and business strategy
• 44% of the business is held by the top 15 shareholders
• 44% of Value Grupo Financiero. de is held by insiders

Every investor in Value Grupo Financiero, S.A.B. de C.V. (BMV:VALUEGFO) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 56% 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 9.5% decrease in the stock price last week, individual investors suffered the most losses, but insiders who own 44% stock also took a hit.

Let's take a closer look to see what the different types of shareholders can tell us about Value Grupo Financiero. de.

See our latest analysis for Value Grupo Financiero. de

What Does The Lack Of Institutional Ownership Tell Us About Value Grupo Financiero. de?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. Value Grupo Financiero. de's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

Hedge funds don't have many shares in Value Grupo Financiero. de. The company's CEO Carlos Manuel Bremer Gutierrez is the largest shareholder with 11% of shares outstanding. With 5.0% and 5.0% of the shares outstanding respectively, Alfonso Garza Valdez and Jorge Luis Munoz Terrazas are the second and third largest shareholders.

Our studies suggest that the top 15 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 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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Value Grupo Financiero. 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. 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.

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.

It seems insiders own a significant proportion of Value Grupo Financiero, S.A.B. de C.V.. Insiders own Mex$7.3b worth of shares in the Mex$17b company. 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 56% of Value Grupo Financiero. 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. For instance, we've identified 3 warning signs for Value Grupo Financiero. de that you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.