Aamal Company Q.P.S.C.'s (DSM:AHCS) market cap rose ر.ق284m last week; private companies who hold 40% profited and so did insiders

Key Insights

• The considerable ownership by private companies in Aamal Company Q.P.S.C indicates that they collectively have a greater say in management and business strategy
• The top 2 shareholders own 64% of the company
• Insiders own 28% of Aamal Company Q.P.S.C

A look at the shareholders of Aamal Company Q.P.S.C. (DSM:AHCS) can tell us which group is most powerful. The group holding the most number of shares in the company, around 40% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).

Private companies gained the most after market cap touched ر.ق5.6b last week, while insiders who own 28% also benefitted.

In the chart below, we zoom in on the different ownership groups of Aamal Company Q.P.S.C.

See our latest analysis for Aamal Company Q.P.S.C

What Does The Institutional Ownership Tell Us About Aamal Company Q.P.S.C?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Aamal Company Q.P.S.C does have institutional investors; and they hold a good portion of the company's stock. 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 Aamal Company Q.P.S.C, (below). Of course, keep in mind that there are other factors to consider, too.

Aamal Company Q.P.S.C is not owned by hedge funds. Al Faisal Holding Company LLC is currently the company's largest shareholder with 39% of shares outstanding. With 25% and 6.5% of the shares outstanding respectively, Faisal Bin Qassim Al Thani and The Commercial Bank of Qatar (Q.S.C.), Asset Management Arm are the second and third largest shareholders.

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 64% stake.

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 Aamal Company Q.P.S.C

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.

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 information suggests that insiders maintain a significant holding in Aamal Company Q.P.S.C.. It is very interesting to see that insiders have a meaningful ر.ق1.6b stake in this ر.ق5.6b business. 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

The general public, who are usually individual investors, hold a 25% stake in Aamal Company Q.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

We can see that Private Companies own 40%, 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. Case in point: We've spotted 1 warning sign for Aamal Company Q.P.S.C you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.