Stock Analysis

Private companies in Qatar Aluminium Manufacturing Company Q.P.S.C. (DSM:QAMC) are its biggest bettors, and their bets paid off as stock gained 3.8% last week

DSM:QAMC
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Key Insights

  • Qatar Aluminium Manufacturing Company Q.P.S.C's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
  • The largest shareholder of the company is QatarEnergy with a 51% stake
  • Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls Qatar Aluminium Manufacturing Company Q.P.S.C. (DSM:QAMC), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are private companies with 51% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, private companies benefitted the most after the company's market cap rose by ر.ق268m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Qatar Aluminium Manufacturing Company Q.P.S.C.

See our latest analysis for Qatar Aluminium Manufacturing Company Q.P.S.C

ownership-breakdown
DSM:QAMC Ownership Breakdown July 17th 2023

What Does The Institutional Ownership Tell Us About Qatar Aluminium Manufacturing Company 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 Qatar Aluminium Manufacturing Company 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. 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 Aluminium Manufacturing Company Q.P.S.C's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
DSM:QAMC Earnings and Revenue Growth July 17th 2023

Hedge funds don't have many shares in Qatar Aluminium Manufacturing Company Q.P.S.C. Looking at our data, we can see that the largest shareholder is QatarEnergy with 51% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. For context, the second largest shareholder holds about 1.9% of the shares outstanding, followed by an ownership of 1.2% by the third-largest shareholder.

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 Qatar Aluminium Manufacturing Company 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.

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 data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public, who are usually individual investors, hold a 44% stake in Qatar Aluminium Manufacturing Company Q.P.S.C. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 51%, 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 Qatar Aluminium Manufacturing Company Q.P.S.C better, we need to consider many other factors. Take risks for example - Qatar Aluminium Manufacturing Company Q.P.S.C has 3 warning signs (and 2 which are potentially serious) we think 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.

Valuation is complex, but we're helping make it simple.

Find out whether Qatar Aluminium Manufacturing Company Q.P.S.C is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.