Institutional investors are Industrias Peñoles, S.A.B. de C.V.'s (BMV:PE&OLES) biggest bettors and were rewarded after last week's Mex$10b market cap gain

Key Insights

• Given the large stake in the stock by institutions, Industrias Peñoles. de's stock price might be vulnerable to their trading decisions
• 53% of the business is held by the top 2 shareholders
• Insider ownership in Industrias Peñoles. de is 19%

To get a sense of who is truly in control of Industrias Peñoles, S.A.B. de C.V. (BMV:PE&OLES), it is important to understand the ownership structure of the business. With 48% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And as as result, institutional investors reaped the most rewards after the company's stock price gained 8.8% last week. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 21%.

In the chart below, we zoom in on the different ownership groups of Industrias Peñoles. de.

Check out our latest analysis for Industrias Peñoles. de

What Does The Institutional Ownership Tell Us About Industrias Peñoles. 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 Industrias Peñoles. 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. 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 Industrias Peñoles. de, (below). Of course, keep in mind that there are other factors to consider, too.

Industrias Peñoles. de is not owned by hedge funds. Our data shows that Albacor, S.A. De C.V. is the largest shareholder with 33% of shares outstanding. For context, the second largest shareholder holds about 19% of the shares outstanding, followed by an ownership of 3.3% by the third-largest shareholder.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 53% stake.

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 Industrias Peñoles. 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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 most recent data indicates that insiders own a reasonable proportion of Industrias Peñoles, S.A.B. de C.V.. Insiders own Mex$23b worth of shares in the Mex$120b company. That's quite meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 33% 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. Be aware that Industrias Peñoles. de is showing 2 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.