Do Insiders Own Lots Of Shares In América Móvil, S.A.B. de C.V. (BMV:AMXL)?

By
Simply Wall St
Published
January 13, 2022
BMV:AMX L
Source: Shutterstock

If you want to know who really controls América Móvil, S.A.B. de C.V. (BMV:AMXL), then you'll have to look at the makeup of its share registry. 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.

América Móvil. de is a pretty big company. It has a market capitalization of Mex$1.3t. Normally institutions would own a significant portion of a company this size. In the chart below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about América Móvil. de.

See our latest analysis for América Móvil. de

ownership-breakdown
BMV:AMX L Ownership Breakdown January 13th 2022

What Does The Institutional Ownership Tell Us About América Móvil. 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.

América Móvil. de already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 América Móvil. de's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
BMV:AMX L Earnings and Revenue Growth January 13th 2022

Hedge funds don't have many shares in América Móvil. de. Trust No. F/0126 is currently the company's largest shareholder with 26% of shares outstanding. Control Empresarial de Capitales S.A. de C.V. is the second largest shareholder owning 16% of common stock, and Carlos Slim Helu holds about 7.7% of the company stock.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 América Móvil. 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 some shares in América Móvil, S.A.B. de C.V.. It is a very large company, and board members collectively own Mex$103b worth of shares (at current prices). we sometimes take an interest in whether they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 34% stake in América Móvil. de. 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 42%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand América Móvil. de better, we need to consider many other factors. Be aware that América Móvil. de is showing 1 warning sign in our investment analysis , you should know about...

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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