Nasdaq
华尔街日报Institutional investors control 35% of Sitios Latinoamérica, S.A.B. de C.V. (BMV:LASITE) and were rewarded last week after stock increased 5.4%
Key Insights
- Given the large stake in the stock by institutions, Sitios Latinoamérica. de's stock price might be vulnerable to their trading decisions
- 51% of the business is held by the top 2 shareholders
- Using data from company's past performance alongside ownership research, one can better assess the future performance of a company
A look at the shareholders of Sitios Latinoamérica, S.A.B. de C.V. (BMV:LASITE) can tell us which group is most powerful. The group holding the most number of shares in the company, around 35% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And things are looking up for institutional investors after the company gained Mex$1.2b in market cap last week. The one-year return on investment is currently 57% and last week's gain would have been more than welcomed.
Let's take a closer look to see what the different types of shareholders can tell us about Sitios Latinoamérica. de.
View our latest analysis for Sitios Latinoamérica. de
What Does The Institutional Ownership Tell Us About Sitios Latinoamérica. 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.
As you can see, institutional investors have a fair amount of stake in Sitios Latinoamérica. de. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Sitios Latinoamérica. de's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Sitios Latinoamérica. de. Our data shows that Control Empresarial de Capitales SA de CV is the largest shareholder with 30% of shares outstanding. In comparison, the second and third largest shareholders hold about 21% and 14% of the stock.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 51% stake.
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 is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Sitios Latinoamérica. de
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 report that insiders do own shares in Sitios Latinoamérica, S.A.B. de C.V.. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around Mex$1.4b worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.
General Public Ownership
With a 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Sitios Latinoamérica. de. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
We can see that Private Companies own 30%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Sitios Latinoamérica. de better, we need to consider many other factors. Be aware that Sitios Latinoamérica. de is showing 3 warning signs in our investment analysis , and 2 of those can't be ignored...
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.