Here's What Gulf Pharmaceutical Industries P.S.C.'s (ADX:JULPHAR) Shareholder Ownership Structure Looks Like

A look at the shareholders of Gulf Pharmaceutical Industries P.S.C. (ADX:JULPHAR) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. 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.

Gulf Pharmaceutical Industries P.S.C is not a large company by global standards. It has a market capitalization of د.إ1.7b, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have not yet purchased shares. Let's take a closer look to see what the different types of shareholders can tell us about Gulf Pharmaceutical Industries P.S.C.

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 multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at 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. Gulf Pharmaceutical Industries P.S.C's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

Gulf Pharmaceutical Industries P.S.C is not owned by hedge funds. Middle East Pharma For Investments is currently the largest shareholder, with 22% of shares outstanding. Government of Ras Al Khaimah is the second largest shareholder owning 12% of common stock, and Arab Company for Drug Industries & Medical Supplies holds about 9.2% of the company stock.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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 I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

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.

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 most recent data indicates that insiders own a reasonable proportion of Gulf Pharmaceutical Industries P.S.C.. Insiders have a د.إ395m stake in this د.إ1.7b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 33% ownership, the general public have some degree of sway over 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

Our data indicates that Private Companies hold 31%, 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:

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. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Gulf Pharmaceutical Industries P.S.C , and understanding them should be part of your investment process.

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.

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