private companies who own 41% along with institutions invested in Grupo México, S.A.B. de C.V. (BMV:GMEXICOB) saw increase in their holdings value last week

Key Insights

• The considerable ownership by private companies in Grupo México. de indicates that they collectively have a greater say in management and business strategy
• 60% of the business is held by the top 2 shareholders
• Insider ownership in Grupo México. de is 19%

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To get a sense of who is truly in control of Grupo México, S.A.B. de C.V. (BMV:GMEXICOB), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 41% to be precise, is private companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 4.6% increase in the stock price last week, private companies profited the most, but institutions who own 27% stock also stood to gain from the increase.

In the chart below, we zoom in on the different ownership groups of Grupo México. de.

Check out our latest analysis for Grupo México. de

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

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Grupo México. de. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Grupo México. de, (below). Of course, keep in mind that there are other factors to consider, too.

Grupo México. de is not owned by hedge funds. Empresarios Industriales de México, S.A. de C.V. is currently the largest shareholder, with 41% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 19% and 5.6%, of the shares outstanding, respectively. German Larrea Mota-Velasco, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Grupo México. de

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders maintain a significant holding in Grupo México, S.A.B. de C.V.. It is very interesting to see that insiders have a meaningful Mex$233b stake in this Mex$1.2t business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 41%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Grupo México. de better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Grupo México. de .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.