Institutional investors control 48% of Industrias Peñoles, S.A.B. de C.V. (BMV:PE&OLES) and were rewarded last week after stock increased 4.7%

Key Insights

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

If you want to know who really controls Industrias Peñoles, S.A.B. de C.V. (BMV:PE&OLES), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 48% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Last week’s 4.7% gain means that institutional investors were on the positive end of the spectrum even as the company has shown strong longer-term trends. The one-year return on investment is currently 54% and last week's gain would have been more than welcomed.

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

See our latest analysis for Industrias Peñoles. de

What Does The Institutional Ownership Tell Us About Industrias Peñoles. 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.

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.

Hedge funds don't have many shares in Industrias Peñoles. de. Looking at our data, we can see that the largest shareholder is Albacor, S.A. De C.V. with 33% of shares outstanding. In comparison, the second and third largest shareholders hold about 19% and 3.4% of the stock.

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 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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Industrias Peñoles. de

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our information suggests that insiders maintain a significant holding in Industrias Peñoles, S.A.B. de C.V.. It is very interesting to see that insiders have a meaningful Mex$25b stake in this Mex$130b business. 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, who are usually individual investors, hold a 32% stake in Industrias Peñoles. de. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Industrias Peñoles. de better, we need to consider many other factors. For instance, we've identified 2 warning signs for Industrias Peñoles. de that you should be aware of.

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.