Is Organización Cultiba, S.A.B. de C.V.'s (BMV:CULTIBAB) Shareholder Ownership Skewed Towards Insiders?

If you want to know who really controls Organización Cultiba, S.A.B. de C.V. (BMV:CULTIBAB), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. 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.

Organización Cultiba. de is not a large company by global standards. It has a market capitalization of Mex$12b, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Organización Cultiba. de.

See our latest analysis for Organización Cultiba. de

What Does The Institutional Ownership Tell Us About Organización Cultiba. 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.

We can see that Organización Cultiba. de does have institutional investors; and they hold a good portion of the company's stock. 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 Organización Cultiba. de's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Organización Cultiba. de. Juan Ignacio Thurlow is currently the company's largest shareholder with 64% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Operadora de Fondos GBM S.A. de C.V is the second largest shareholder owning 11% of common stock, and Eduardo Sanchez Navarro Redo holds about 4.2% of the company stock. Eduardo Sanchez Navarro Redo, who is the third-largest shareholder, also happens to hold the title of Vice Chairman.

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. 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 Organización Cultiba. 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.

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 that insiders own more than half the Organización Cultiba, S.A.B. de C.V. stock. This gives them a lot of power. Given it has a market cap of Mex$12b, that means they have Mex$8.5b worth of shares. 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

With a 15% ownership, the general public have some degree of sway over Organización Cultiba. de. 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 Organización Cultiba. de better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Organización Cultiba. de you should know about.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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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