Yahoo Finance Here's What Banco Latinoamericano de Comercio Exterior, S. A.'s (NYSE:BLX) Shareholder Ownership Structure Looks Like
The big shareholder groups in Banco Latinoamericano de Comercio Exterior, S. A. (NYSE:BLX) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.
Banco Latinoamericano de Comercio Exterior S. A is a smaller company with a market capitalization of US$525m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions own shares in the company. 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.
Check out 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?
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.
Banco Latinoamericano de Comercio Exterior S. A already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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.
Hedge funds don't have many shares in Banco Latinoamericano de Comercio Exterior S. A. The company's largest shareholder is Brandes Investment Partners, LP, with ownership of 16%. BlackRock, Inc. is the second largest shareholder owning 4.5% of common stock, and Banco de la Nacion Argentina, Asset Management Arm holds about 3.7% of the company stock.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
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.
We can see that insiders own shares in Banco Latinoamericano de Comercio Exterior, S. A.. It has a market capitalization of just US$525m, and insiders have US$7.5m worth of shares, in their own names. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public, mostly comprising of individual investors, collectively holds 52% 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:
It's always worth thinking about the different groups who own shares in a company. But to understand Banco Latinoamericano de Comercio Exterior S. A better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Banco Latinoamericano de Comercio Exterior S. A (at least 2 which shouldn't be ignored) , and understanding them should be part of your investment process.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.
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.