Estithmar Holding Q.P.S.C. (DSM:IGRD) adds ر.ق435m in market cap and insiders have a 54% stake in that gain

Key Insights

• Insiders appear to have a vested interest in Estithmar Holding Q.P.S.C's growth, as seen by their sizeable ownership
• 59% of the business is held by the top 2 shareholders
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

A look at the shareholders of Estithmar Holding Q.P.S.C. (DSM:IGRD) can tell us which group is most powerful. The group holding the most number of shares in the company, around 54% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit ر.ق7.6b market cap following a 6.1% gain in the stock.

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

Check out our latest analysis for Estithmar Holding Q.P.S.C

What Does The Lack Of Institutional Ownership Tell Us About Estithmar Holding Q.P.S.C?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in 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. Estithmar Holding Q.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.

Hedge funds don't have many shares in Estithmar Holding Q.P.S.C. Mohamad Moutaz Mhd Al-Khayyat is currently the company's largest shareholder with 40% of shares outstanding. Ramez Mohamed Al-Khayyat is the second largest shareholder owning 19% of common stock, and UCC Holding holds about 19% of the company stock. Ramez Mohamed Al-Khayyat, who is the second-largest shareholder, also happens to hold the title of President.

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 59% stake.

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. 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 Estithmar Holding Q.P.S.C

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 that insiders own more than half the Estithmar Holding Q.P.S.C. stock. This gives them a lot of power. Insiders own ر.ق4.1b worth of shares in the ر.ق7.6b company. That's extraordinary! Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

The general public, who are usually individual investors, hold a 19% stake in Estithmar Holding Q.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

Our data indicates that Private Companies hold 17%, 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Estithmar Holding Q.P.S.C better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Estithmar Holding Q.P.S.C you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.