Taaleem Holdings PJSC (DFM:TAALEEM) institutional investors have had a good week as stock gains 5.0%

Key Insights

• Given the large stake in the stock by institutions, Taaleem Holdings PJSC's stock price might be vulnerable to their trading decisions
• The top 25 shareholders own 46% of the company
• Insiders own 18% of Taaleem Holdings PJSC

If you want to know who really controls Taaleem Holdings PJSC (DFM:TAALEEM), then you'll have to look at the makeup of its share registry. With 28% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, institutional investors were the biggest beneficiaries of last week’s 5.0% gain.

Let's delve deeper into each type of owner of Taaleem Holdings PJSC, beginning with the chart below.

View our latest analysis for Taaleem Holdings PJSC

What Does The Institutional Ownership Tell Us About Taaleem Holdings PJSC?

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.

As you can see, institutional investors have a fair amount of stake in Taaleem Holdings PJSC. 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. 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 Taaleem Holdings PJSC's historic earnings and revenue below, but keep in mind there's always more to the story.

Taaleem Holdings PJSC is not owned by hedge funds. National Bonds Corporation PJSC., Asset Management Arm is currently the company's largest shareholder with 17% of shares outstanding. For context, the second largest shareholder holds about 7.2% of the shares outstanding, followed by an ownership of 6.3% 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 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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Taaleem Holdings PJSC

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.

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.

Our information suggests that insiders maintain a significant holding in Taaleem Holdings PJSC. It has a market capitalization of just د.إ3.9b, and insiders have د.إ702m worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public-- including retail investors -- own 27% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 13%, of the company's shares. 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 Taaleem Holdings PJSC better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Taaleem Holdings PJSC (of which 1 is a bit unpleasant!) you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.