Retail investors who hold 52% of National Company for Learning and Education (TADAWUL:4291) gained 4.7%, institutions profited as well

Key Insights

• National Company for Learning and Education's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 22 investors have a majority stake in the company with 48% ownership
• Insiders own 22% of National Company for Learning and Education

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A look at the shareholders of National Company for Learning and Education (TADAWUL:4291) can tell us which group is most powerful. With 52% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

While retail investors were the group that benefitted the most from last week’s ر.س310m market cap gain, institutions too had a 26% share in those profits.

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

View 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.

We note that hedge funds don't have a meaningful investment in National Company for Learning and Education. The company's largest shareholder is Mohammed Ibrahim Al-Khudair Waqf Foundation., Endowment Arm, with ownership of 22%. Khaled bin Mohammed Al-Khudair is the second largest shareholder owning 22% of common stock, and The Vanguard Group, Inc. holds about 1.9% of the company stock.

Our studies suggest that the top 22 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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

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. 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.

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 most recent data indicates that insiders own a reasonable proportion of National Company for Learning and Education. It has a market capitalization of just ر.س6.9b, and insiders have ر.س1.5b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 52% of National Company for Learning and Education shares. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - National Company for Learning and Education has 1 warning sign we think 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.