Stock Analysis

Ooredoo Q.P.S.C. (DSM:ORDS) stock most popular amongst private equity firms who own 52%, while individual investors hold 18%

DSM:ORDS
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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
  • Qatar Holding LLC owns 52% of the company
  • Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

To get a sense of who is truly in control of Ooredoo Q.P.S.C. (DSM:ORDS), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are private equity firms with 52% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Individual investors, on the other hand, account for 18% 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.

View our latest analysis for Ooredoo Q.P.S.C

ownership-breakdown
DSM:ORDS Ownership Breakdown September 23rd 2023

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 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 Ooredoo 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:ORDS Earnings and Revenue Growth September 23rd 2023

Hedge funds don't have many shares in Ooredoo Q.P.S.C. The company's largest shareholder is Qatar Holding LLC, with ownership of 52%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. For context, the second largest shareholder holds about 15% of the shares outstanding, followed by an ownership of 10.0% by the third-largest shareholder.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

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.

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 most recent data indicates that insiders own less than 1% of Ooredoo Q.P.S.C.. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own ر.ق2.2m 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

The general public, who are usually individual investors, hold a 18% stake in 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 52% stake in Ooredoo Q.P.S.C. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Ooredoo Q.P.S.C better, we need to consider many other factors. Take risks for example - Ooredoo Q.P.S.C has 1 warning sign we think you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.