What Kind Of Shareholders Hold The Majority In Abdullah Al-Othaim Markets Company's (TADAWUL:4001) Shares?

The big shareholder groups in Abdullah Al-Othaim Markets Company (TADAWUL:4001) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. 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.

Abdullah Al-Othaim Markets has a market capitalization of ر.س11b, so we would expect some institutional investors to have noticed the stock. In the chart below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Abdullah Al-Othaim Markets.

See our latest analysis for Abdullah Al-Othaim Markets

What Does The Institutional Ownership Tell Us About Abdullah Al-Othaim Markets?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Abdullah Al-Othaim Markets already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Abdullah Al-Othaim Markets, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Abdullah Al-Othaim Markets. Looking at our data, we can see that the largest shareholder is Othaim Holding Company with 28% of shares outstanding. Abdullah Saleh Bin Mohammed Al-Othaim is the second largest shareholder owning 6.0% of common stock, and General Organization for Social Insurance holds about 4.9% of the company 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.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Abdullah Al-Othaim Markets

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.

I can report that insiders do own shares in Abdullah Al-Othaim Markets Company. This is a big company, so it is good to see this level of alignment. Insiders own ر.س674m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public -- mostly retail investors -- own 55% of Abdullah Al-Othaim Markets. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

We can see that Private Companies own 28%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Abdullah Al-Othaim Markets better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Abdullah Al-Othaim Markets you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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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