Here's What Ras Al Khaimah Co. for White Cement & Construction Materials P.S.C.'s (ADX:RAKWCT) Shareholder Ownership Structure Looks Like

If you want to know who really controls Ras Al Khaimah Co. for White Cement & Construction Materials P.S.C. (ADX:RAKWCT), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

Ras Al Khaimah for White Cement & Construction Materials P.S.C is a smaller company with a market capitalization of د.إ390m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about Ras Al Khaimah for White Cement & Construction Materials P.S.C.

See our latest analysis for Ras Al Khaimah for White Cement & Construction Materials P.S.C

What Does The Institutional Ownership Tell Us About Ras Al Khaimah for White Cement & Construction Materials P.S.C?

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 Ras Al Khaimah for White Cement & Construction Materials P.S.C. 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 Ras Al Khaimah for White Cement & Construction Materials P.S.C, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Ras Al Khaimah for White Cement & Construction Materials P.S.C. Al Salem Company Ltd. is currently the largest shareholder, with 16% of shares outstanding. For context, the second largest shareholder holds about 16% of the shares outstanding, followed by an ownership of 14% by the third-largest shareholder. Salem Abdulla Al Hosani, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

On looking further, we found that 55% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Ras Al Khaimah for White Cement & Construction Materials P.S.C

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 maintain a significant holding in Ras Al Khaimah Co. for White Cement & Construction Materials P.S.C.. Insiders have a د.إ65m stake in this د.إ390m business. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 42% ownership, the general public have some degree of sway over Ras Al Khaimah for White Cement & Construction Materials P.S.C. 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

It seems that Private Companies own 16%, of the Ras Al Khaimah for White Cement & Construction Materials P.S.C stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Ras Al Khaimah for White Cement & Construction Materials P.S.C better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Ras Al Khaimah for White Cement & Construction Materials P.S.C (of which 1 is potentially serious!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.

When trading Ras Al Khaimah for White Cement & Construction Materials P.S.C or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.