After the recent decline, Leejam Sports Company (TADAWUL:1830) Senior Key Executive Hamad bin Al-Saqri's holdings have lost 3.4% of their value

Key Insights

• Significant insider control over Leejam Sports implies vested interests in company growth
• 51% of the company is held by a single shareholder (Hamad bin Al-Saqri)
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

Every investor in Leejam Sports Company (TADAWUL:1830) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 52% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to ر.س9.2b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of Leejam Sports, beginning with the chart below.

Check out our latest analysis for Leejam Sports

What Does The Institutional Ownership Tell Us About Leejam Sports?

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 Leejam Sports. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Leejam Sports' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Leejam Sports. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Leejam Sports' case, its Senior Key Executive, Hamad bin Al-Saqri, is the largest shareholder, holding 51% of shares outstanding. In comparison, the second and third largest shareholders hold about 1.9% and 0.9% of the stock.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Leejam Sports

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

It seems that insiders own more than half the Leejam Sports Company stock. This gives them a lot of power. Insiders own ر.س4.8b worth of shares in the ر.س9.2b company. That's extraordinary! Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 42% stake in the company, and hence can't 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Leejam Sports better, we need to consider many other factors. Be aware that Leejam Sports is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.