Individual investors own 15% of Ooredoo Q.P.S.C. (DSM:ORDS) shares but private equity firms control 53% of the company
Key Insights
- Ooredoo Q.P.S.C's significant private equity firms ownership suggests that the key decisions are influenced by shareholders from the larger public
- The largest shareholder of the company is Qatar Holding LLC with a 53% stake
- Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
Every investor in Ooredoo Q.P.S.C. (DSM:ORDS) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are private equity firms with 53% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Individual investors, on the other hand, account for 15% of the company's stockholders.
Let's take a closer look to see what the different types of shareholders can tell us about Ooredoo Q.P.S.C.
See our latest analysis for Ooredoo Q.P.S.C
What Does The Institutional Ownership Tell Us About Ooredoo Q.P.S.C?
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.
Ooredoo Q.P.S.C already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Ooredoo Q.P.S.C's earnings history below. Of course, the future is what really matters.
It looks like hedge funds own 10.0% of Ooredoo Q.P.S.C shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Looking at our data, we can see that the largest shareholder is Qatar Holding LLC with 53% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. General Retirement and Social Insurance Authority is the second largest shareholder owning 15% of common stock, and Abu Dhabi Investment Authority holds about 10.0% of the company stock.
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 Ooredoo Q.P.S.C
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
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.
Our information suggests that Ooredoo Q.P.S.C. insiders own under 1% of the company. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own ر.ق1.6m of stock. In this sort of situation, it can be more interesting to see if those insiders have been buying or selling.
General Public Ownership
With a 15% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Ooredoo 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 Equity Ownership
Private equity firms hold a 53% stake in Ooredoo Q.P.S.C. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
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. For instance, we've identified 1 warning sign for Ooredoo Q.P.S.C that you should be aware of.
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. 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.