Gulf Pharmaceutical Industries P.S.C.'s (ADX:JULPHAR) market cap surged د.إ94m last week, private companies who have a lot riding on the company were rewarded

Key Insights

• Gulf Pharmaceutical Industries P.S.C's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 4 investors have a majority stake in the company with 54% ownership
• Insiders own 24% of Gulf Pharmaceutical Industries P.S.C

Every investor in Gulf Pharmaceutical Industries P.S.C. (ADX:JULPHAR) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are private companies with 33% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, private companies benefitted the most after the company's market cap rose by د.إ94m last week.

Let's delve deeper into each type of owner of Gulf Pharmaceutical Industries P.S.C, beginning with the chart below.

See our latest analysis for Gulf Pharmaceutical Industries P.S.C

What Does The Lack Of Institutional Ownership Tell Us About Gulf Pharmaceutical Industries P.S.C?

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 are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. Gulf Pharmaceutical Industries P.S.C might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

We note that hedge funds don't have a meaningful investment in Gulf Pharmaceutical Industries P.S.C. Middle East Pharma For Investments is currently the company's largest shareholder with 24% of shares outstanding. With 12% and 9.2% of the shares outstanding respectively, Ras Al Khaimah (Emirate of) and Arab Company for Drug Industries & Medical Supplies are the second and third largest shareholders.

On looking further, we found that 54% 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.

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 a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Gulf Pharmaceutical Industries 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.

It seems insiders own a significant proportion of Gulf Pharmaceutical Industries P.S.C.. It has a market capitalization of just د.إ982m, and insiders have د.إ233m worth of shares in their own names. We 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

The general public, who are usually individual investors, hold a 31% stake in Gulf Pharmaceutical Industries P.S.C. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 33%, of the shares on issue. 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:

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.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.