National Building and Marketing Co.'s (TADAWUL:9510) largest shareholder, Member of Management Board Fahad Bin Al-Thunayan sees holdings value fall by 9.6% following recent drop

Key Insights

• National Building and Marketing's significant insider ownership suggests inherent interests in company's expansion
• The largest shareholder of the company is Fahad Bin Al-Thunayan with a 67% stake
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

If you want to know who really controls National Building and Marketing Co. (TADAWUL:9510), then you'll have to look at the makeup of its share registry. With 67% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders as a group endured the highest losses after market cap fell by ر.س286m.

Let's delve deeper into each type of owner of National Building and Marketing, beginning with the chart below.

Check out our latest analysis for National Building and Marketing

What Does The Lack Of Institutional Ownership Tell Us About National Building and Marketing?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. National Building and Marketing's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

National Building and Marketing is not owned by hedge funds. From our data, we infer that the largest shareholder is Fahad Bin Al-Thunayan (who also holds the title of Member of Management Board) with 67% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. Meanwhile, the second and third largest shareholders, hold 0.02% and 0.01%, of the shares outstanding, respectively.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of National Building and Marketing

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.

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.

It seems that insiders own more than half the National Building and Marketing Co. stock. This gives them a lot of power. Given it has a market cap of ر.س2.7b, that means they have ر.س1.8b worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 33% ownership, the general public, mostly comprising of individual investors, have some degree of sway over National Building and Marketing. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that National Building and Marketing is showing 4 warning signs in our investment analysis , and 1 of those is a bit concerning...

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.