Do Institutions Own Abdulmohsen Al-Hokair Group for Tourism and Development Company (TADAWUL:1820) Shares?

If you want to know who really controls Abdulmohsen Al-Hokair Group for Tourism and Development Company (TADAWUL:1820), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

With a market capitalization of ر.س1.3b, Abdulmohsen Al-Hokair Group for Tourism and Development is a small cap stock, so it might not be well known by many institutional investors. 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 Abdulmohsen Al-Hokair Group for Tourism and Development.

View our latest analysis for Abdulmohsen Al-Hokair Group for Tourism and Development

What Does The Institutional Ownership Tell Us About Abdulmohsen Al-Hokair Group for Tourism and Development?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Abdulmohsen Al-Hokair Group for Tourism and Development. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Abdulmohsen Al-Hokair Group for Tourism and Development's historic earnings and revenue below, but keep in mind there's always more to the story.

Abdulmohsen Al-Hokair Group for Tourism and Development is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Abdulmohsen Al Hokair & Sons Holding Co. with 32% of shares outstanding. Abdul Bin Abdul Aziz Alhokair is the second largest shareholder owning 12% of common stock, and Norges Bank Investment Management holds about 3.9% of the company stock. Abdul Bin Abdul Aziz Alhokair, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.

On looking further, we found that 50% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Abdulmohsen Al-Hokair Group for Tourism and Development

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our information suggests that insiders maintain a significant holding in Abdulmohsen Al-Hokair Group for Tourism and Development Company. Insiders have a ر.س178m stake in this ر.س1.3b business. 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, with a 48% stake in the company, will not easily be ignored. 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

Our data indicates that Private Companies hold 32%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private 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. Case in point: We've spotted 2 warning signs for Abdulmohsen Al-Hokair Group for Tourism and Development you should be aware of, and 1 of them is significant.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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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