Retail investors who have a significant stake must be disappointed along with institutions after National Company for Learning and Education's (TADAWUL:4291) market cap dropped by ر.س327m

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
• 48% of the business is held by the top 20 shareholders
• Insider ownership in National Company for Learning and Education is 22%

If you want to know who really controls National Company for Learning and Education (TADAWUL:4291), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are retail investors with 52% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While institutions who own 25% came under pressure after market cap dropped to ر.س7.9b last week,retail investors took the most losses.

In the chart below, we zoom in on the different ownership groups of National Company for Learning and Education.

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 suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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.

We note that hedge funds don't have a meaningful investment in National Company for Learning and Education. 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. Meanwhile, the second and third largest shareholders, hold 22% and 1.5%, of the shares outstanding, respectively.

Our studies suggest that the top 20 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. 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 National Company for Learning and Education

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 National Company for Learning and Education. Insiders own ر.س1.7b worth of shares in the ر.س7.9b company. That's quite meaningful. 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, mostly comprising of individual investors, collectively holds 52% of National Company for Learning and Education shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand National Company for Learning and Education better, we need to consider many other factors. For instance, we've identified 1 warning sign for National Company for Learning and Education that you should be aware of.

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. 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.