Stock Analysis

Estithmar Holding Q.P.S.C. (DSM:IGRD) insiders have significant skin in the game with 59% ownership

DSM:IGRD
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Key Insights

  • Estithmar Holding Q.P.S.C's significant insider ownership suggests inherent interests in company's expansion
  • A total of 2 investors have a majority stake in the company with 59% ownership
  • 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. We can see that individual insiders own the lion's share in the company with 59% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.

Let's delve deeper into each type of owner of Estithmar Holding Q.P.S.C, beginning with the chart below.

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

ownership-breakdown
DSM:IGRD Ownership Breakdown June 10th 2024

What Does The Lack Of Institutional Ownership Tell Us About Estithmar Holding Q.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. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Estithmar Holding Q.P.S.C, for yourself, below.

earnings-and-revenue-growth
DSM:IGRD Earnings and Revenue Growth June 10th 2024

Estithmar Holding Q.P.S.C is not owned by hedge funds. Mohamad Moutaz Mhd Al-Khayyat is currently the largest shareholder, with 40% of shares outstanding. With 19% and 19% of the shares outstanding respectively, Ramez Mohamed Al-Khayyat and UCC Holding are the second and third largest shareholders. 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.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Estithmar Holding Q.P.S.C

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own the majority of Estithmar Holding Q.P.S.C.. This means they can collectively make decisions for the company. That means insiders have a very meaningful ر.ق3.9b stake in this ر.ق6.5b business. 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 21% 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

We can see that Private Companies own 19%, of the shares on issue. 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.

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.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

Valuation is complex, but we're here to simplify it.

Discover if Estithmar Holding Q.P.S.C might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.