Alwasail Industrial Company's (TADAWUL:9525): Senior Key Executive Saleh Almushekih is the most bullish insider, and their stock value gained 15% last week

Key Insights

• Insiders appear to have a vested interest in Alwasail Industrial's growth, as seen by their sizeable ownership
• A total of 3 investors have a majority stake in the company with 52% ownership
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Alwasail Industrial Company (TADAWUL:9525) can tell us which group is most powerful. With 83% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit ر.س548m market cap following a 15% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Alwasail Industrial.

View our latest analysis for Alwasail Industrial

What Does The Lack Of Institutional Ownership Tell Us About Alwasail Industrial?

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 many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. 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. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Alwasail Industrial, for yourself, below.

Hedge funds don't have many shares in Alwasail Industrial. From our data, we infer that the largest shareholder is Saleh Almushekih (who also holds the title of Senior Key Executive) with 18% 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. With 18% and 16% of the shares outstanding respectively, Abdul Aziz Almushekih and Abdul Rahman Almushekih are the second and third largest shareholders. Interestingly, the third-largest shareholder, Abdul Rahman Almushekih is also a Chairman of the Board, again, indicating strong insider ownership amongst the company's top shareholders. Additionally, the company's CEO Abdul Kader Almushekih directly holds 15% of the total shares outstanding.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 52% stake.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Alwasail Industrial

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

It seems that insiders own more than half the Alwasail Industrial Company stock. This gives them a lot of power. So they have a ر.س457m stake in this ر.س548m business. 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

The general public-- including retail investors -- own 16% stake in the company, and hence can't easily be ignored. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Alwasail Industrial better, we need to consider many other factors. Be aware that Alwasail Industrial is showing 2 warning signs in our investment analysis , and 1 of those is a bit concerning...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.