Axtel, S.A.B. de C.V.'s (BMV:AXTELCPO) stock price dropped 15% last week; public companies would not be happy

Published
April 23, 2022
BMV:AXTEL CPO
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Every investor in Axtel, S.A.B. de C.V. (BMV:AXTELCPO) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 53% to be precise, is public companies. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies as a group endured the highest losses last week after market cap fell by Mex$1.1b.

Let's delve deeper into each type of owner of Axtel. de, beginning with the chart below.

See our latest analysis for Axtel. de

ownership-breakdown
BMV:AXTEL CPO Ownership Breakdown April 23rd 2022

What Does The Institutional Ownership Tell Us About Axtel. 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.

As you can see, institutional investors have a fair amount of stake in Axtel. de. 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 Axtel. de's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
BMV:AXTEL CPO Earnings and Revenue Growth April 23rd 2022

We note that hedge funds don't have a meaningful investment in Axtel. de. The company's largest shareholder is Alfa, S.A.B. de C.V., with ownership of 53%. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 2.6% of the shares outstanding, followed by an ownership of 1.7% by the third-largest shareholder.

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. 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 Axtel. 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.

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 data cannot confirm that board members are holding shares personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public, who are usually individual investors, hold a 40% stake in Axtel. de. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

It appears to us that public companies own 53% of Axtel. de. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

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

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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