Insiders the biggest winners as Nofoth Food Products Company's (TADAWUL:9556) market cap rises to ر.س707m

Key Insights

• Nofoth Food Products' significant insider ownership suggests inherent interests in company's expansion
• The top 4 shareholders own 51% of the company
• Institutional ownership in Nofoth Food Products is 13%

Every investor in Nofoth Food Products Company (TADAWUL:9556) should be aware of the most powerful shareholder groups. With 48% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by ر.س179m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Nofoth Food Products.

Check out our latest analysis for Nofoth Food Products

What Does The Institutional Ownership Tell Us About Nofoth Food Products?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Nofoth Food Products. 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 Nofoth Food Products' historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Nofoth Food Products. Ibrahim Abdullah Al Fayez is currently the largest shareholder, with 14% of shares outstanding. With 13% and 12% of the shares outstanding respectively, Saad & Abdulaziz Al Mousa Endowment, Endowment Arm and Ibrahim bin Al-Amqian are the second and third largest shareholders. Ibrahim bin Al-Amqian, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

On looking further, we found that 51% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Nofoth Food Products

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 most recent data indicates that insiders own a reasonable proportion of Nofoth Food Products Company. Insiders have a ر.س341m stake in this ر.س707m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 39% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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 - Nofoth Food Products has 1 warning sign we think you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.