What Kind Of Shareholders Hold The Majority In Mouwasat Medical Services Company's (TADAWUL:4002) Shares?

If you want to know who really controls Mouwasat Medical Services Company (TADAWUL:4002), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Mouwasat Medical Services has a market capitalization of ر.س15b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about Mouwasat Medical Services.

View our latest analysis for Mouwasat Medical Services

What Does The Institutional Ownership Tell Us About Mouwasat Medical Services?

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.

We can see that Mouwasat Medical Services does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Mouwasat Medical Services, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Mouwasat Medical Services. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Mouwasat Medical Services' case, its Top Key Executive, Mohammed Al-Saleem, is the largest shareholder, holding 18% of shares outstanding. The second and third largest shareholders are Mohammed Al-Subaie and Nasser Sultan Al-Subaie, with an equal amount of shares to their name at 18%. Interestingly, the third-largest shareholder, Nasser Sultan Al-Subaie is also a Vice Chairman, again, indicating strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 Mouwasat Medical Services

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. 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 own more than half of Mouwasat Medical Services Company. This gives them effective control of the company. Given it has a market cap of ر.س15b, that means insiders have a whopping ر.س7.7b worth of shares in their own names. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

With a 42% ownership, the general public have some degree of sway over Mouwasat Medical Services. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Mouwasat Medical Services better, we need to consider many other factors.

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.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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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