The recent Mex$4.4b market cap decrease is likely to have disappointed insiders invested in Promotora y Operadora de Infraestructura, S. A. B. de C. V. (BMV:PINFRA)

Key Insights

• Significant insider control over Promotora y Operadora de Infraestructura S. A. B. de C. V implies vested interests in company growth
• A total of 2 investors have a majority stake in the company with 50% ownership
• Institutions own 19% of Promotora y Operadora de Infraestructura S. A. B. de C. V

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. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, insiders endured the biggest losses as the stock fell by 5.4%.

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.

See 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?

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.

Promotora y Operadora de Infraestructura S. A. B. de C. V already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 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. The company's largest shareholder is Adriana Penaloza Alanis, with ownership of 25%. In comparison, the second and third largest shareholders hold about 25% and 4.0% of the stock. David Alanis, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 50% stake.

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. 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

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.

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. Given it has a market cap of Mex$78b, that means insiders have a whopping Mex$39b worth of shares in their own names. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

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

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Promotora y Operadora de Infraestructura S. A. B. de C. V better, we need to consider many other factors. Take risks for example - Promotora y Operadora de Infraestructura S. A. B. de C. V has 1 warning sign we think you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.