Private companies are Vodafone Qatar P.Q.S.C.'s (DSM:VFQS) biggest owners and were hit after market cap dropped ر.ق376m

Key Insights

• The considerable ownership by private companies in Vodafone Qatar P.Q.S.C indicates that they collectively have a greater say in management and business strategy
• The top 2 shareholders own 58% of the company
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

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Every investor in Vodafone Qatar P.Q.S.C. (DSM:VFQS) should be aware of the most powerful shareholder groups. We can see that private companies own the lion's share in the company with 45% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to ر.ق10b last week, private companies would have faced the highest losses than any other shareholder groups of the company.

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

Check out our latest analysis for Vodafone Qatar P.Q.S.C

What Does The Institutional Ownership Tell Us About Vodafone Qatar P.Q.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 Vodafone Qatar P.Q.S.C. 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 Vodafone Qatar P.Q.S.C's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Vodafone Qatar P.Q.S.C. Vodafone and Qatar Foundation LLC is currently the company's largest shareholder with 45% of shares outstanding. With 13% and 5.0% of the shares outstanding respectively, General Retirement and Social Insurance Authority and Qatar Foundation for Education, Science and Community Development, Endowment Arm are the second and third largest shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Vodafone Qatar P.Q.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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that Vodafone Qatar P.Q.S.C. insiders own under 1% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own ر.ق26m 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

The general public-- including retail investors -- own 33% stake in the company, and hence can't easily be ignored. 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 Company Ownership

We can see that Private Companies own 45%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Vodafone Qatar P.Q.S.C better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Vodafone Qatar P.Q.S.C you should know about.

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.