Do Institutions Own TV Azteca, S.A.B. de C.V. (BMV:AZTECACPO) Shares?

By
Simply Wall St
Published
July 24, 2021
BMV:AZTECA CPO
Source: Shutterstock

A look at the shareholders of TV Azteca, S.A.B. de C.V. (BMV:AZTECACPO) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

TV Azteca. de is not a large company by global standards. It has a market capitalization of Mex$2.6b, which means it wouldn't have the attention of many institutional investors. In the chart below, we can see that institutions don't own many shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about TV Azteca. de.

View our latest analysis for TV Azteca. de

ownership-breakdown
BMV:AZTECA CPO Ownership Breakdown July 24th 2021

What Does The Institutional Ownership Tell Us About TV Azteca. 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.

Less than 5% of TV Azteca. de is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

earnings-and-revenue-growth
BMV:AZTECA CPO Earnings and Revenue Growth July 24th 2021

Hedge funds don't have many shares in TV Azteca. de. Comunicaciones Avanzadas, S.a. De C.v. is currently the largest shareholder, with 57% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Ricardo Benjamín Salinas Pliego is the second largest shareholder owning 8.4% of common stock, and Operadora Inbursa de Sociedades de Inversión, S.A. de C.V. holds about 1.2% of the company stock. Ricardo Benjamín Salinas Pliego, who is the second-largest shareholder, also happens to hold the title of President.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of TV Azteca. de

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

We can see that insiders own shares in TV Azteca, S.A.B. de C.V.. It has a market capitalization of just Mex$2.6b, and insiders have Mex$221m worth of shares, in their own names. This shows at least some alignment, but I usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 33% ownership, the general public have some degree of sway over TV Azteca. 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.

Private Company Ownership

Our data indicates that Private Companies hold 57%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand TV Azteca. de better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for TV Azteca. de you should be aware of, and 1 of them is concerning.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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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This article by Simply Wall St is general in nature. 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.
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