Recent 5.8% pullback would hurt Promotora y Operadora de Infraestructura, S. A. B. de C. V. (BMV:PINFRA) insiders

Key Insights

• Promotora y Operadora de Infraestructura S. A. B. de C. V's significant insider ownership suggests inherent interests in company's expansion
• The top 2 shareholders own 50% of the company
• Institutions own 19% of Promotora y Operadora de Infraestructura S. A. B. de C. V

Our free stock report includes 2 warning signs investors should be aware of before investing in Promotora y Operadora de Infraestructura S. A. B. de C. V. Read for free now.

To get a sense of who is truly in control of Promotora y Operadora de Infraestructura, S. A. B. de C. V. (BMV:PINFRA), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 50% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders as a group endured the highest losses after market cap fell by Mex$5.6b.

Let's delve deeper into each type of owner of Promotora y Operadora de Infraestructura S. A. B. de C. V, beginning with the chart below.

View our latest analysis for Promotora y Operadora de Infraestructura S. A. B. de C. V

What Does The Institutional Ownership Tell Us About Promotora y Operadora de Infraestructura S. A. B. de C. V?

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.

As you can see, institutional investors have a fair amount of stake in Promotora y Operadora de Infraestructura S. A. B. de C. V. 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 Promotora y Operadora de Infraestructura S. A. B. de C. V's historic earnings and revenue below, but keep in mind there's always more to the story.

Promotora y Operadora de Infraestructura S. A. B. de C. V is not owned by hedge funds. Our data shows that Adriana Penaloza Alanis is the largest shareholder with 25% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 25% and 4.0%, of the shares outstanding, respectively. David Alanis, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of 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 Promotora y Operadora de Infraestructura 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. 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 information suggests that insiders own more than half of Promotora y Operadora de Infraestructura, S. A. B. de C. V.. This gives them effective control of the company. Insiders own Mex$45b worth of shares in the Mex$90b company. That's extraordinary! Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 31% stake in the company, and hence can't easily be ignored. 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.

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 2 warning signs we've spotted with Promotora y Operadora de Infraestructura S. A. B. de C. V (including 1 which is a bit unpleasant) .

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.