Stock Analysis

Individual investors are United Development Company Q.P.S.C.'s (DSM:UDCD) biggest owners and were hit after market cap dropped ر.ق301m

  •  Updated
DSM:UDCD
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To get a sense of who is truly in control of United Development Company Q.P.S.C. (DSM:UDCD), it is important to understand the ownership structure of the business. With 53% stake, individual investors 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.

And last week, individual investors endured the biggest losses as the stock fell by 5.7%.

Let's delve deeper into each type of owner of United Development Company Q.P.S.C, beginning with the chart below.

If you're not interested in researching UDCD's ownership structure, we have a free list of interesting investing ideas to potentially inspire your next investment!

ownership-breakdown
DSM:UDCD Ownership Breakdown September 28th 2022

What Does The Institutional Ownership Tell Us About United Development Company Q.P.S.C?

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.

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 company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. 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.

earnings-and-revenue-growth
DSM:UDCD Earnings and Revenue Growth September 28th 2022

We note that hedge funds don't have a meaningful investment in United Development Company Q.P.S.C. The company's largest shareholder is General Retirement and Social Insurance Authority, with ownership of 33%. In comparison, the second and third largest shareholders hold about 9.3% and 1.8% of the stock.

Our studies suggest that the top 21 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant 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. As far as we 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

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Shareholders would probably be interested to learn that insiders own shares in United Development Company Q.P.S.C.. The insiders have a meaningful stake worth ر.ق464m. Most would see this as a real positive. 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, who are usually individual investors, hold a substantial 53% stake in United Development Company Q.P.S.C, suggesting it is a fairly popular stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand United Development Company Q.P.S.C better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for United Development Company Q.P.S.C (of which 1 makes us a bit uncomfortable!) you should know about.

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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Find out whether United Development 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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