Stock Analysis

Gulf International Services Q.P.S.C.'s (DSM:GISS) market cap surged ر.ق251m last week, retail investors who have a lot riding on the company were rewarded

DSM:GISS
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Key Insights

  • Significant control over Gulf International Services Q.P.S.C by retail investors implies that the general public has more power to influence management and governance-related decisions
  • 41% of the business is held by the top 20 shareholders
  • Institutions own 14% of Gulf International Services Q.P.S.C

Every investor in Gulf International Services Q.P.S.C. (DSM:GISS) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 59% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, retail investors benefitted the most after the company's market cap rose by ر.ق251m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Gulf International Services Q.P.S.C.

See our latest analysis for Gulf International Services Q.P.S.C

ownership-breakdown
DSM:GISS Ownership Breakdown September 11th 2023

What Does The Institutional Ownership Tell Us About Gulf International Services Q.P.S.C?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Gulf International Services Q.P.S.C does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Gulf International Services Q.P.S.C's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
DSM:GISS Earnings and Revenue Growth September 11th 2023

Gulf International Services Q.P.S.C is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is General Retirement and Social Insurance Authority with 17% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 10% and 5.3%, of the shares outstanding, respectively.

A deeper look at our ownership data shows that the top 20 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. 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 Gulf International Services Q.P.S.C

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 information suggests that Gulf International Services Q.P.S.C. insiders own under 1% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own ر.ق592k worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 59% of Gulf International Services Q.P.S.C shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

It seems that Private Companies own 10%, of the Gulf International Services Q.P.S.C stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Gulf International Services Q.P.S.C (including 1 which can't be ignored) .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.