While institutions own 39% of Banco Latinoamericano de Comercio Exterior, S. A. (NYSE:BLX), retail investors are its largest shareholders with 54% ownership
Key Insights
The considerable ownership by retail investors in Banco Latinoamericano de Comercio Exterior S. A indicates that they collectively have a greater say in management and business strategy
A total of 25 investors have a majority stake in the company with 43% ownership
Institutions own 39% of Banco Latinoamericano de Comercio Exterior S. A
A look at the shareholders of Banco Latinoamericano de Comercio Exterior, S. A. (NYSE:BLX) can tell us which group is most powerful. With 54% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, institutions make up 39% of the company’s shareholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
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.
We can see that Banco Latinoamericano de Comercio Exterior S. A does have institutional investors; and they hold a good portion of the company's stock. 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. 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.
Banco Latinoamericano de Comercio Exterior S. A is not owned by hedge funds. The company's largest shareholder is Brandes Investment Partners, LP, with ownership of 12%. For context, the second largest shareholder holds about 3.7% of the shares outstanding, followed by an ownership of 3.4% by the third-largest shareholder.
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 a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
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$31m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.
General Public Ownership
The general public, who are usually individual investors, hold a substantial 54% stake in Banco Latinoamericano de Comercio Exterior S. A, suggesting it is a fairly popular stock. 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 risks, for instance. Every company has them, and we've spotted 1 warning sign for Banco Latinoamericano de Comercio Exterior S. A you should know about.
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.
