Stock Analysis

Becle, S.A.B. de C.V. (BMV:CUERVO) CEO Juan Domingo Beckmann Legorreta's holdings dropped 5.1% in value as a result of the recent pullback

BMV:CUERVO *
Source: Shutterstock

Key Insights

  • Becle. de's significant insider ownership suggests inherent interests in company's expansion
  • 51% of the company is held by a single shareholder (Juan Domingo Beckmann Legorreta)
  • Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

If you want to know who really controls Becle, S.A.B. de C.V. (BMV:CUERVO), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 51% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders as a group endured the highest losses after market cap fell by Mex$8.9b.

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

See our latest analysis for Becle. de

ownership-breakdown
BMV:CUERVO * Ownership Breakdown September 1st 2023

What Does The Institutional Ownership Tell Us About Becle. 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.

Becle. de already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Becle. de's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
BMV:CUERVO * Earnings and Revenue Growth September 1st 2023

Hedge funds don't have many shares in Becle. de. The company's CEO Juan Domingo Beckmann Legorreta is the largest shareholder with 51% of shares outstanding. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. With 1.2% and 0.8% of the shares outstanding respectively, Norges Bank Investment Management and FMR LLC are the second and third largest shareholders.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Becle. 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 Becle, S.A.B. de C.V.. This gives them effective control of the company. Insiders own Mex$84b worth of shares in the Mex$165b company. That's extraordinary! Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

The general public-- including retail investors -- own 43% stake in the company, and hence can't easily be ignored. 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:

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.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

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 here to simplify it.

Discover if Becle. de might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.