Here's What United Development Company Q.P.S.C.'s (DSM:UDCD) Shareholder Ownership Structure Looks Like

A look at the shareholders of United Development Company Q.P.S.C. (DSM:UDCD) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

With a market capitalization of ر.ق5.6b, United Development Company Q.P.S.C is a decent size, so it is probably on the radar of institutional investors. Our analysis of the ownership of the company, below, shows that institutions don't own many shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about United Development Company Q.P.S.C.

Check out our latest analysis for United Development Company Q.P.S.C

What Does The Institutional Ownership Tell Us About United Development 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.

Institutions have a very small stake in United Development Company Q.P.S.C. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Hedge funds don't have many shares in United Development Company Q.P.S.C. Looking at our data, we can see that the largest shareholder is General Retirement and Social Insurance Authority with 33% of shares outstanding. With 9.4% and 1.9% of the shares outstanding respectively, Ibrahim Al-Asmakh and The Vanguard Group, Inc. are the second and third largest shareholders.

A deeper look at our ownership data shows that the top 22 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. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of United Development 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.

We can see that insiders own shares in United Development Company Q.P.S.C.. This is a big company, so it is good to see this level of alignment. Insiders own ر.ق526m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public collectively holds 54% of United Development Company Q.P.S.C shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that United Development Company Q.P.S.C is showing 2 warning signs in our investment analysis , and 1 of those is significant...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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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