Individual investors are Abdulmohsen Al-Hokair Group for Tourism and Development Company's (TADAWUL:1820) biggest owners and were rewarded after market cap rose by ر.س91m last week

Key Insights

• The considerable ownership by individual investors in Abdulmohsen Al-Hokair Group for Tourism and Development indicates that they collectively have a greater say in management and business strategy
• A total of 6 investors have a majority stake in the company with 46% ownership
• 13% of Abdulmohsen Al-Hokair Group for Tourism and Development is held by insiders

To get a sense of who is truly in control of Abdulmohsen Al-Hokair Group for Tourism and Development Company (TADAWUL:1820), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 54% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, individual investors were the biggest beneficiaries of last week’s 10% gain.

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

Less than 5% of Abdulmohsen Al-Hokair Group for Tourism and Development is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Abdulmohsen Al-Hokair Group for Tourism and Development is not owned by hedge funds. Our data shows that Abdulmohsen Al Hokair & Sons Holding Co. is the largest shareholder with 31% of shares outstanding. For context, the second largest shareholder holds about 12% of the shares outstanding, followed by an ownership of 0.7% by the third-largest shareholder. Abdul Bin Abdul Aziz Alhokair, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.

On studying our ownership data, we found that 6 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. 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. 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.

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.

Our information suggests that insiders maintain a significant holding in Abdulmohsen Al-Hokair Group for Tourism and Development Company. It has a market capitalization of just ر.س992m, and insiders have ر.س129m worth of shares in their own names. We 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, who are usually individual investors, hold a substantial 54% stake in Abdulmohsen Al-Hokair Group for Tourism and Development, suggesting it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

It seems that Private Companies own 31%, of the Abdulmohsen Al-Hokair Group for Tourism and Development stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Abdulmohsen Al-Hokair Group for Tourism and Development better, we need to consider many other factors. For instance, we've identified 2 warning signs for Abdulmohsen Al-Hokair Group for Tourism and Development (1 is a bit concerning) that you should be aware of.

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. 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.