Insiders were the biggest winners as Gulf Medical Projects Company (PJSC)'s (ADX:GMPC) market cap grew by د.إ154m last week

Key Insights

• Insiders appear to have a vested interest in Gulf Medical Projects Company (PJSC)'s growth, as seen by their sizeable ownership
• The top 3 shareholders own 66% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of Gulf Medical Projects Company (PJSC) (ADX:GMPC) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 72% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders were the biggest beneficiaries of last week’s 11% gain.

Let's delve deeper into each type of owner of Gulf Medical Projects Company (PJSC), beginning with the chart below.

Check out our latest analysis for Gulf Medical Projects Company (PJSC)

What Does The Lack Of Institutional Ownership Tell Us About Gulf Medical Projects Company (PJSC)?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Gulf Medical Projects Company (PJSC), for yourself, below.

Gulf Medical Projects Company (PJSC) is not owned by hedge funds. Salem Salem Al Hosani is currently the largest shareholder, with 30% of shares outstanding. With 19% and 17% of the shares outstanding respectively, Abdullah Salem Al Hosani and Majid Bin Faisal Al Qassimi are the second and third largest shareholders. Majid Bin Faisal Al Qassimi, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

After doing some more digging, we found that the top 3 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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Gulf Medical Projects Company (PJSC)

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders own more than half of Gulf Medical Projects Company (PJSC). This gives them effective control of the company. Given it has a market cap of د.إ1.6b, that means they have د.إ1.2b worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Gulf Medical Projects Company (PJSC). While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Gulf Medical Projects Company (PJSC) better, we need to consider many other factors. Be aware that Gulf Medical Projects Company (PJSC) is showing 3 warning signs in our investment analysis , and 2 of those are a bit concerning...

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.