Saudi Tadawul Group Holding Company's (TADAWUL:1111) top owners are sovereign wealth funds with 60% stake, while 35% is held by individual investors

Key Insights

• Significant control over Saudi Tadawul Group Holding by sovereign wealth funds implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is Public Investment Fund with a 60% stake
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Saudi Tadawul Group Holding Company (TADAWUL:1111) can tell us which group is most powerful. With 60% stake, sovereign wealth funds possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

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.

See our latest analysis for Saudi Tadawul Group Holding

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

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.

As you can see, institutional investors have a fair amount of stake in Saudi Tadawul Group Holding. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Saudi Tadawul Group Holding's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares 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. Meanwhile, the second and third largest shareholders, hold 1.7% and 1.1%, of the shares outstanding, respectively.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. 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 Saudi Tadawul Group Holding

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.

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 data suggests that insiders own under 1% of Saudi Tadawul Group Holding Company in their own names. 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.س672k worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 35% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

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.