Megacable Holdings, S. A. B. de C. V.'s (BMV:MEGACPO) 7.2% loss last week hit both individual investors who own 51% as well as institutions

Key Insights

• The considerable ownership by retail investors in Megacable Holdings S. A. B. de C. V indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 48% of the company
• Insiders own 24% of Megacable Holdings S. A. B. de C. V

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Every investor in Megacable Holdings, S. A. B. de C. V. (BMV:MEGACPO) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While institutions, who own 25% shares weren’t spared from last week’s Mex$2.1b market cap drop, retail investors as a group suffered the maximum losses

In the chart below, we zoom in on the different ownership groups of Megacable Holdings S. A. B. de C. V.

View our latest analysis for Megacable Holdings S. A. B. de C. V

What Does The Institutional Ownership Tell Us About Megacable Holdings S. A. B. de C. V?

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 Megacable Holdings S. A. B. de C. V does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Megacable Holdings S. A. B. de C. V's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Megacable Holdings S. A. B. de C. V. Francisco Robinson Bours Castelo is currently the largest shareholder, with 9.3% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder owning 6.6% of common stock, and BlackRock, Inc. holds about 5.1% of the company stock. In addition, we found that Enrique Yamuni Robles, the CEO has 4.2% of the shares allocated to their name.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 Megacable Holdings S. A. B. de C. V

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

It seems insiders own a significant proportion of Megacable Holdings, S. A. B. de C. V.. Insiders own Mex$6.5b worth of shares in the Mex$27b company. That's quite meaningful. 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 51% of Megacable Holdings S. A. B. de C. V. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Megacable Holdings S. A. B. de C. V better, we need to consider many other factors. Be aware that Megacable Holdings S. A. B. de C. V is showing 2 warning signs in our investment analysis , and 1 of those can't be ignored...

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.