Recent uptick might appease Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (BMV:VOLARA) institutional owners after losing 29% 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
• 51% of the business is held by the top 11 shareholders
• 12% of Controladora Vuela Compañía de Aviación. de is held by insiders

Every investor in Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (BMV:VOLARA) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 38% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Last week's Mex$1.1b market cap gain would probably be appreciated by institutional investors, especially after a year of 29% losses.

In the chart below, we zoom in on the different ownership groups of 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?

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.

We can see that Controladora Vuela Compañía de Aviación. de does have institutional investors; and they hold a good portion of the company's stock. 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. 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. Our data shows that Indigo Partners LLC is the largest shareholder with 18% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 9.4% and 4.2%, of the shares outstanding, respectively. Additionally, the company's CEO Enrique Beltranena Mejicano directly holds 0.9% of the total shares outstanding.

A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

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 Controladora Vuela Compañía de Aviación. de

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Controladora Vuela Compañía de Aviación, S.A.B. de C.V.. Insiders have a Mex$1.7b stake in this Mex$14b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 31% stake in Controladora Vuela Compañía de Aviación. de. 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 might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Controladora Vuela Compañía de Aviación. de is showing 1 warning sign in our investment analysis , you should know about...

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.

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.