Stock Analysis

What Kind Of Shareholders Hold The Majority In Corporación Inmobiliaria Vesta S.A.B. de C.V.'s (BMV:VESTA) Shares?

BMV:VESTA *
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The big shareholder groups in Corporación Inmobiliaria Vesta S.A.B. de C.V. (BMV:VESTA) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. 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.

With a market capitalization of Mex$22b, Corporación Inmobiliaria Vesta. de is a decent size, so it is probably on the radar of institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Corporación Inmobiliaria Vesta. de.

Check out our latest analysis for Corporación Inmobiliaria Vesta. de

ownership-breakdown
BMV:VESTA * Ownership Breakdown January 25th 2021

What Does The Institutional Ownership Tell Us About Corporación Inmobiliaria Vesta. 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 Corporación Inmobiliaria Vesta. 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. 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 Corporación Inmobiliaria Vesta. de's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
BMV:VESTA * Earnings and Revenue Growth January 25th 2021

Corporación Inmobiliaria Vesta. de is not owned by hedge funds. Afore Coppel S.A. de C.V is currently the largest shareholder, with 8.8% of shares outstanding. Sura Investment Management México, S.A. De C.V., Sociedad Operadora De Sociedades De Inver is the second largest shareholder owning 6.1% of common stock, and JREP I Mexico Holdings I, LLC holds about 5.4% of the company stock.

After doing some more digging, we found that the top 13 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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 Corporación Inmobiliaria Vesta. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own some shares in Corporación Inmobiliaria Vesta S.A.B. de C.V.. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around Mex$1.7b worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, with a 31% stake in the company, will not 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.

Private Company Ownership

Our data indicates that Private Companies hold 14%, 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:

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. To that end, you should learn about the 3 warning signs we've spotted with Corporación Inmobiliaria Vesta. de (including 1 which is a bit concerning) .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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. 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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