Axtel, SAB de CV (BMV:AXTELCPO) stock price fell 15% last week; public companies would not be happy

Every investor in Axtel, SAB de CV (BMV: AXTELCPO) should know the most powerful shareholder groups. The group with the largest number of shares in the company, around 53% to be precise, are the public companies. In other words, the group faces the maximum upside potential (or downside risk).

As a result, public companies as a group suffered the highest losses last week after market capitalization fell by 1.1 billion Mexican pesos.

Let’s dig deeper into each type of Axtel owner. of, starting with the table below.

See our latest analysis for Axtel. of

BMV: Distribution of the ownership of the CPO of AXTEL on April 23, 2022

What does institutional ownership tell us about Axtel? of ?

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 hold a significant share of Axtel. of. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Axel. below is de’s historical revenue and earnings, but keep in mind there’s always more to the story.

earnings-and-revenue-growth
BMV: AXTEL CPO Revenue and Revenue Growth April 23, 2022

We note that hedge funds have no significant investment in Axtel. of. The main shareholder of the company is Alfa, SAB de CV, with a 53% stake. This implies that they have majority control over the future of the company. For context, the second shareholder owns approximately 2.6% of the outstanding shares, followed by a 1.7% ownership by the third shareholder.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.

Insider property of Axtel. of

The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Our data does not allow us to confirm that the members of the board of directors personally hold shares. Not all jurisdictions have the same rules regarding insider ownership disclosure, and we may be missing something here. So you can click here to learn more about the CEO.

General public property

The general public, generally individual investors, holds 40% of Axtel’s capital. of. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Ownership of a public company

It appears to us that public companies hold 53% of Axtel. of. It may be a strategic interest and both companies may have related business interests. They may have separated. This exploitation probably deserves further investigation.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to understand Axtel. better, we have to consider many other factors. Example: we have identified 2 warning signs for Axtel. of you should be aware.

But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Karen J. Nelson