While institutions invested in Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (BMV:VOLARA) benefited from last week's 14% gain, individual investors stood to gain the most

Key Insights

• The considerable ownership by individual investors in Controladora Vuela Compañía de Aviación. de indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 50% of the company
• Institutional ownership in Controladora Vuela Compañía de Aviación. de is 34%

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A look at the shareholders of Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (BMV:VOLARA) can tell us which group is most powerful. With 45% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors gained the most after market cap touched Mex$11b last week, while institutions who own 34% also benefitted.

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

View our latest analysis for Controladora Vuela Compañía de Aviación. de

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

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

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 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Controladora Vuela Compañía de Aviación. de, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Controladora Vuela Compañía de Aviación. de. Looking at our data, we can see that the largest shareholder is Indigo Partners LLC with 18% of shares outstanding. For context, the second largest shareholder holds about 4.3% of the shares outstanding, followed by an ownership of 3.2% by the third-largest shareholder. In addition, we found that Enrique Beltranena Mejicano, the CEO has 1.1% of the shares allocated to their name.

After doing some more digging, we found that the top 25 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over 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 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

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

We can report that insiders do own shares in Controladora Vuela Compañía de Aviación, S.A.B. de C.V.. In their own names, insiders own Mex$315m worth of stock in the Mex$11b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 45% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

Private equity firms hold a 18% stake in Controladora Vuela Compañía de Aviación. de. This suggests they can be influential in key policy decisions. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

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. Case in point: We've spotted 2 warning signs for Controladora Vuela Compañía de Aviación. de you should be aware of, and 1 of them makes us a bit uncomfortable.

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.