Banco Latinoamericano de Comercio Exterior, S. A.'s (NYSE:BLX) market cap touched US$991m last week, benefiting both individual investors who own 55% as well as institutions

Key Insights

• Banco Latinoamericano de Comercio Exterior S. A's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 25 investors have a majority stake in the company with 43% ownership
• Institutional ownership in Banco Latinoamericano de Comercio Exterior S. A is 39%

A look at the shareholders of Banco Latinoamericano de Comercio Exterior, S. A. (NYSE:BLX) can tell us which group is most powerful. With 55% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

While individual investors were the group that reaped the most benefits after last week’s 16% price gain, institutions also received a 39% cut.

Let's delve deeper into each type of owner of Banco Latinoamericano de Comercio Exterior S. A, beginning with the chart below.

View our latest analysis for Banco Latinoamericano de Comercio Exterior S. A

What Does The Institutional Ownership Tell Us About Banco Latinoamericano de Comercio Exterior S. A?

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.

Banco Latinoamericano de Comercio Exterior S. A already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Banco Latinoamericano de Comercio Exterior S. A, (below). Of course, keep in mind that there are other factors to consider, too.

Banco Latinoamericano de Comercio Exterior S. A is not owned by hedge funds. Brandes Investment Partners, LP is currently the largest shareholder, with 12% of shares outstanding. Banco de la Nacion Argentina, Asset Management Arm is the second largest shareholder owning 3.7% of common stock, and BlackRock, Inc. holds about 3.6% of the company stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Banco Latinoamericano de Comercio Exterior S. A

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.

Shareholders would probably be interested to learn that insiders own shares in Banco Latinoamericano de Comercio Exterior, S. A.. In their own names, insiders own US$18m worth of stock in the US$991m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public -- including retail investors -- own 55% of Banco Latinoamericano de Comercio Exterior S. A. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

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. For example, we've discovered 1 warning sign for Banco Latinoamericano de Comercio Exterior S. A that you should be aware of before investing here.

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.

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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.