Institutions profited after Banco Latinoamericano de Comercio Exterior, S. A.'s (NYSE:BLX) market cap rose US$53m last week but individual investors profited the most

Key Insights

• The considerable ownership by individual investors in Banco Latinoamericano de Comercio Exterior S. A indicates that they collectively have a greater say in management and business strategy
• 42% of the business is held by the top 25 shareholders
• Institutional ownership in Banco Latinoamericano de Comercio Exterior S. A is 38%

Every investor in Banco Latinoamericano de Comercio Exterior, S. A. (NYSE:BLX) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 54% ownership. 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 US$1.1b last week, while institutions who own 38% also benefitted.

Let's take a closer look to see what the different types of shareholders can tell us about Banco Latinoamericano de Comercio Exterior S. A.

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?

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.

Banco Latinoamericano de Comercio Exterior S. A 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. 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 Banco Latinoamericano de Comercio Exterior S. A's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Banco Latinoamericano de Comercio Exterior S. A. Looking at our data, we can see that the largest shareholder is Brandes Investment Partners, LP 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 3.2% 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 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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Banco Latinoamericano de Comercio Exterior S. A

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We can see that insiders own shares in Banco Latinoamericano de Comercio Exterior, S. A.. This is a big company, so it is good to see this level of alignment. Insiders own US$32m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 54% of Banco Latinoamericano de Comercio Exterior S. A shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for Banco Latinoamericano de Comercio Exterior S. A 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.

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