Individual investors own 35% of Saudi Tadawul Group Holding Company (TADAWUL:1111) shares but sovereign wealth funds control 60% of the company

Key Insights

• Saudi Tadawul Group Holding's significant sovereign wealth funds ownership suggests that the key decisions are influenced by shareholders from the larger public
• Public Investment Fund owns 60% of the company
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

If you want to know who really controls Saudi Tadawul Group Holding Company (TADAWUL:1111), then you'll have to look at the makeup of its share registry. We can see that sovereign wealth funds own the lion's share in the company with 60% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And individual investors on the other hand have a 35% ownership in the company.

Let's delve deeper into each type of owner of Saudi Tadawul Group Holding, beginning with the chart below.

View our latest analysis for Saudi Tadawul Group Holding

What Does The Institutional Ownership Tell Us About Saudi Tadawul Group Holding?

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 Saudi Tadawul Group Holding. 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 Saudi Tadawul Group Holding's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Saudi Tadawul Group Holding. Public Investment Fund is currently the largest shareholder, with 60% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. In comparison, the second and third largest shareholders hold about 1.6% and 1.0% of the stock.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Saudi Tadawul Group Holding

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 Saudi Tadawul Group Holding Company insiders own under 1% of the company. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own ر.س725k worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 35% stake in Saudi Tadawul Group Holding. 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 Saudi Tadawul Group Holding better, we need to consider many other factors. For example, we've discovered 1 warning sign for Saudi Tadawul Group Holding that you should be aware of before investing here.

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.