Institutions profited after National Company for Learning and Education's (TADAWUL:4291) market cap rose ر.س275m last week but retail investors profited the most

Key Insights

• Significant control over National Company for Learning and Education by retail investors implies that the general public has more power to influence management and governance-related decisions
• The top 24 shareholders own 48% of the company
• 22% of National Company for Learning and Education is held by insiders

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Every investor in National Company for Learning and Education (TADAWUL:4291) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 52% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Retail investors gained the most after market cap touched ر.س6.4b last week, while institutions who own 26% also benefitted.

Let's delve deeper into each type of owner of National Company for Learning and Education, beginning with the chart below.

See our latest analysis for National Company for Learning and Education

What Does The Institutional Ownership Tell Us About National Company for Learning and Education?

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.

We can see that National Company for Learning and Education does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 National Company for Learning and Education's earnings history below. Of course, the future is what really matters.

National Company for Learning and Education is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Mohammed Ibrahim Al-Khudair Waqf Foundation., Endowment Arm with 22% of shares outstanding. Khaled bin Mohammed Al-Khudair is the second largest shareholder owning 22% of common stock, and The Vanguard Group, Inc. holds about 2.0% of the company stock.

Our studies suggest that the top 24 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.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of National Company for Learning and Education

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

Our information suggests that insiders maintain a significant holding in National Company for Learning and Education. It is very interesting to see that insiders have a meaningful ر.س1.4b stake in this ر.س6.4b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public -- including retail investors -- own 52% of National Company for Learning and Education. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for National Company for Learning and Education you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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. 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.