Ooredoo Q.P.S.C. (DSM:ORDS) stock most popular amongst private equity firms who own 53%, while individual investors hold 15%

Key Insights

• Significant control over Ooredoo Q.P.S.C by private equity firms implies that the general public has more power to influence management and governance-related decisions
• Qatar Holding LLC owns 53% of the company
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of Ooredoo Q.P.S.C. (DSM:ORDS) can tell us which group is most powerful. The group holding the most number of shares in the company, around 53% to be precise, is private equity firms. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, individual investors make up 15% of the company’s shareholders.

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

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

What Does The Institutional Ownership Tell Us About Ooredoo 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.

As you can see, institutional investors have a fair amount of stake in Ooredoo Q.P.S.C. 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.

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 53%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. In comparison, the second and third largest shareholders hold about 15% and 10.0% of the 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Ooredoo Q.P.S.C

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 most recent data indicates that insiders own less than 1% of Ooredoo Q.P.S.C.. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own ر.ق1.4m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been 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. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Equity Ownership

With an ownership of 53%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. 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:

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. For instance, we've identified 2 warning signs 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.