Insiders with their considerable ownership were the key benefactors as Estithmar Holding Q.P.S.C. (DSM:IGRD) touches ر.ق15b market cap

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

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Every investor in Estithmar Holding Q.P.S.C. (DSM:IGRD) should be aware of the most powerful shareholder groups. With 59% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by ر.ق947m last week.

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

See our latest analysis for Estithmar Holding Q.P.S.C

What Does The Institutional Ownership Tell Us About Estithmar Holding 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.

Institutions have a very small stake in Estithmar Holding Q.P.S.C. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Hedge funds don't have many shares in Estithmar Holding Q.P.S.C. Our data shows that Mohamad Moutaz Mhd Al-Khayyat is the largest shareholder with 40% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 19% and 19%, of the shares outstanding, respectively. Ramez Mohamed Al-Khayyat, who is the second-largest shareholder, also happens to hold the title of President.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. 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

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.

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.

It seems that insiders own more than half the Estithmar Holding Q.P.S.C. stock. This gives them a lot of power. That means insiders have a very meaningful ر.ق8.8b stake in this ر.ق15b 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

With a 21% ownership, the general public, mostly comprising of individual investors, have some degree of sway over 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 19%, of the company's shares. 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. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Estithmar Holding Q.P.S.C (of which 1 shouldn't be ignored!) you should know about.

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.