Qatar Gas Transport Company Limited (Nakilat) (QPSC) (DSM:QGTS) is largely controlled by institutional shareholders who own 45% of the company

Key Insights

• Given the large stake in the stock by institutions, Qatar Gas Transport Company Limited (Nakilat) (QPSC)'s stock price might be vulnerable to their trading decisions
• 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

A look at the shareholders of Qatar Gas Transport Company Limited (Nakilat) (QPSC) (DSM:QGTS) can tell us which group is most powerful. With 45% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.

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

See 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)?

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.

Qatar Gas Transport Company Limited (Nakilat) (QPSC) already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Qatar Gas Transport Company Limited (Nakilat) (QPSC)'s historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Qatar Gas Transport Company Limited (Nakilat) (QPSC). Milaha Capital is currently the largest shareholder, with 36% of shares outstanding. For context, the second largest shareholder holds about 14% of the shares outstanding, followed by an ownership of 2.0% by the third-largest shareholder.

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 51% 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

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.

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 less than 1% of Qatar Gas Transport Company Limited (Nakilat) (QPSC). 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.ق541k worth of shares (at current prices). 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-- including retail investors -- own 40% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Qatar Gas Transport Company Limited (Nakilat) (QPSC) better, we need to consider many other factors. Take risks for example - Qatar Gas Transport Company Limited (Nakilat) (QPSC) has 1 warning sign we think you should be aware of.

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.