Positive week for Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (BMV:VOLARA) institutional investors who lost 36% over the past year

Key Insights

• Institutions' substantial holdings in Controladora Vuela Compañía de Aviación. de implies that they have significant influence over the company's share price
• The top 11 shareholders own 52% of the company
• Insider ownership in Controladora Vuela Compañía de Aviación. de is 12%

To get a sense of who is truly in control of Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (BMV:VOLARA), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are institutions with 41% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

After a year of 36% losses, last week’s 7.1% gain would be welcomed by institutional investors as a possible sign that returns might start trending higher.

Let's take a closer look to see what the different types of shareholders can tell us about Controladora Vuela Compañía de Aviación. de.

Check out our latest analysis for Controladora Vuela Compañía de Aviación. de

What Does The Institutional Ownership Tell Us About Controladora Vuela Compañía de Aviación. 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.

Controladora Vuela Compañía de Aviación. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Controladora Vuela Compañía de Aviación. de's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Controladora Vuela Compañía de Aviación. de. The company's largest shareholder is Indigo Partners LLC, with ownership of 18%. William Franke is the second largest shareholder owning 9.4% of common stock, and BlackRock, Inc. holds about 4.0% of the company stock. Additionally, the company's CEO Enrique Beltranena Mejicano directly holds 0.8% of the total shares outstanding.

After doing some more digging, we found that the top 11 have the combined ownership of 52% in the company, suggesting that no single shareholder has significant control over the company.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Controladora Vuela Compañía de Aviación. 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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 a reasonable proportion of Controladora Vuela Compañía de Aviación, S.A.B. de C.V.. Insiders own Mex$1.8b worth of shares in the Mex$15b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 29% 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.

Private Equity Ownership

With an ownership of 18%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Controladora Vuela Compañía de Aviación. de better, we need to consider many other factors. Take risks for example - Controladora Vuela Compañía de Aviación. de 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.

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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.