Stock Analysis

    What Type Of Shareholders Own The Most Number of Samba Financial Group (TADAWUL:1090) Shares?

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    Every investor in Samba Financial Group (TADAWUL:1090) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.

    Samba Financial Group has a market capitalization of ر.س61b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. In the chart below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Samba Financial Group.

    See our latest analysis for Samba Financial Group

    ownership-breakdown
    SASE:1090 Ownership Breakdown December 26th 2020

    What Does The Institutional Ownership Tell Us About Samba Financial Group?

    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 Samba Financial Group. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Samba Financial Group's earnings history below. Of course, the future is what really matters.

    earnings-and-revenue-growth
    SASE:1090 Earnings and Revenue Growth December 26th 2020

    Samba Financial Group is not owned by hedge funds. Our data shows that The Public Investment Fund of The Kingdom of Saudi Arabia is the largest shareholder with 23% of shares outstanding. In comparison, the second and third largest shareholders hold about 12% and 7.1% of the stock.

    Our studies suggest that the top 25 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.

    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 Samba Financial Group

    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.

    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 data suggests that insiders own under 1% of Samba Financial Group in their own names. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own ر.س34m of stock. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

    General Public Ownership

    The general public, mostly retail investors, hold a substantial 54% stake in Samba Financial Group, suggesting it is a fairly popular stock. With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.

    Next Steps:

    It's always worth thinking about the different groups who own shares in a company. But to understand Samba Financial Group better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Samba Financial Group you should be aware of, and 1 of them is concerning.

    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. 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.
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