After a year of 7.1% returns, Qatar Gas Transport Company Limited (Nakilat) (QPSC)'s (DSM:QGTS) share price drop last week may have less of an impact on institutional investors

Key Insights

• Significantly high institutional ownership implies Qatar Gas Transport Company Limited (Nakilat) (QPSC)'s stock price is sensitive to their trading actions
• The top 2 shareholders own 51% of the company
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

If you want to know who really controls Qatar Gas Transport Company Limited (Nakilat) (QPSC) (DSM:QGTS), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 45% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Institutional investors endured the highest losses after the company's market cap fell by ر.ق1.1b last week. Still, the 7.1% one-year gains may have helped mitigate their overall losses. We would assume however, that they would be on the lookout for weakness in the future.

In the chart below, we zoom in on the different ownership groups of Qatar Gas Transport Company Limited (Nakilat) (QPSC).

View our latest analysis for Qatar Gas Transport Company Limited (Nakilat) (QPSC)

What Does The Institutional Ownership Tell Us About Qatar Gas Transport Company Limited (Nakilat) (QPSC)?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Qatar Gas Transport Company Limited (Nakilat) (QPSC). This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Qatar Gas Transport Company Limited (Nakilat) (QPSC)'s earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Qatar Gas Transport Company Limited (Nakilat) (QPSC). The company's largest shareholder is Milaha Capital, with ownership of 36%. Meanwhile, the second and third largest shareholders, hold 14% and 2.0%, of the shares outstanding, respectively.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Qatar Gas Transport Company Limited (Nakilat) (QPSC)

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.

Our information suggests that Qatar Gas Transport Company Limited (Nakilat) (QPSC) insiders own under 1% of the company. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around ر.ق550k worth of shares (at current prices). Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

With a 41% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Qatar Gas Transport Company Limited (Nakilat) (QPSC). While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 2 warning signs for Qatar Gas Transport Company Limited (Nakilat) (QPSC) that you should be aware of before investing here.

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.