Stock Analysis

What Kind Of Investors Own Most Of Qatar Gas Transport Company Limited (Nakilat) (QPSC) (DSM:QGTS)?

DSM:QGTS
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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. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

With a market capitalization of ر.ق18b, Qatar Gas Transport Company Limited (Nakilat) (QPSC) is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Qatar Gas Transport Company Limited (Nakilat) (QPSC).

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

ownership-breakdown
DSM:QGTS Ownership Breakdown January 12th 2021

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 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. 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.

earnings-and-revenue-growth
DSM:QGTS Earnings and Revenue Growth January 12th 2021

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Qatar Gas Transport Company Limited (Nakilat) (QPSC) is not owned by hedge funds. 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 4.0% by the third-largest shareholder.

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.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

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 data cannot confirm that board members are holding shares personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public holds a 34% stake in Qatar Gas Transport Company Limited (Nakilat) (QPSC). 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.

Public Company Ownership

We can see that public companies hold 3.5% of the Qatar Gas Transport Company Limited (Nakilat) (QPSC) shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Qatar Gas Transport Company Limited (Nakilat) (QPSC) you should know about.

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. 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.
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