Ras Al Khaimah Co. for White Cement & Construction Materials P.S.C.'s (ADX:RAKWCT) market cap surged د.إ70m last week, public companies who have a lot riding on the company were rewarded

Key Insights

• Ras Al Khaimah for White Cement & Construction Materials P.S.C's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 56% of the business is held by the top 2 shareholders
• 16% of Ras Al Khaimah for White Cement & Construction Materials P.S.C is held by Institutions

To get a sense of who is truly in control of Ras Al Khaimah Co. for White Cement & Construction Materials P.S.C. (ADX:RAKWCT), it is important to understand the ownership structure of the business. With 29% stake, public companies 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).

As a result, public companies collectively scored the highest last week as the company hit د.إ700m market cap following a 11% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Ras Al Khaimah for White Cement & Construction Materials P.S.C.

Check out 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?

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.

Ras Al Khaimah for White Cement & Construction Materials P.S.C already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Ras Al Khaimah for White Cement & Construction Materials P.S.C's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Ras Al Khaimah for White Cement & Construction Materials P.S.C. Grasim Industries Limited is currently the largest shareholder, with 29% of shares outstanding. For context, the second largest shareholder holds about 27% of the shares outstanding, followed by an ownership of 16% by the third-largest shareholder.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 56% stake.

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

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

Our data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

With a 19% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Ras Al Khaimah for White Cement & Construction Materials P.S.C. 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.

Private Company Ownership

It seems that Private Companies own 27%, 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.

Public Company Ownership

Public companies currently own 29% of Ras Al Khaimah for White Cement & Construction Materials P.S.C stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Ras Al Khaimah for White Cement & Construction Materials P.S.C is showing 2 warning signs in our investment analysis , you should know about...

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.