In This Article:
Key Insights
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Coca-Cola FEMSA. de's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
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75% of the business is held by the top 2 shareholders
Every investor in Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 75% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And institutions on the other hand have a 15% ownership in the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.
In the chart below, we zoom in on the different ownership groups of Coca-Cola FEMSA. de.
Check out our latest analysis for Coca-Cola FEMSA. de
What Does The Institutional Ownership Tell Us About Coca-Cola FEMSA. de?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a fair amount of stake in Coca-Cola FEMSA. de. 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 Coca-Cola FEMSA. de, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Coca-Cola FEMSA. de. Our data shows that Fomento Económico Mexicano, S.A.B. de C.V. is the largest shareholder with 47% of shares outstanding. In comparison, the second and third largest shareholders hold about 28% and 3.0% of the stock.
After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.