Here's What Al Abdullatif Industrial Investment Company's (TADAWUL:2340) Shareholder Ownership Structure Looks Like

A look at the shareholders of Al Abdullatif Industrial Investment Company (TADAWUL:2340) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

Al Abdullatif Industrial Investment is not a large company by global standards. It has a market capitalization of ر.س1.2b, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are not really that prevalent on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Al Abdullatif Industrial Investment.

View our latest analysis for Al Abdullatif Industrial Investment

What Does The Lack Of Institutional Ownership Tell Us About Al Abdullatif Industrial Investment?

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. Alternatively, there might be something about the company that has kept institutional investors away. Al Abdullatif Industrial Investment'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.

Hedge funds don't have many shares in Al Abdullatif Industrial Investment. Looking at our data, we can see that the largest shareholder is Al-Abdullatif Group Holding Company with 60% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Omar Al Abdullatif is the second largest shareholder owning 6.0% of common stock, and Abdullatif Al Abdullatif holds about 2.5% of the company stock. Abdullatif Al Abdullatif, who is the third-largest shareholder, also happens to hold the title of Vice Chairman.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Al Abdullatif Industrial Investment

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.

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.

It seems insiders own a significant proportion of Al Abdullatif Industrial Investment Company. It has a market capitalization of just ر.س1.2b, and insiders have ر.س135m worth of shares in their own names. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public holds a 28% stake in Al Abdullatif Industrial Investment. 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

It seems that Private Companies own 60%, of the Al Abdullatif Industrial Investment stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Al Abdullatif Industrial Investment you should know about.

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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