Owning 42% in Dr. Sulaiman Al Habib Medical Services Group Company (TADAWUL:4013) means that insiders are heavily invested in the company's future

Key Insights

• Insiders appear to have a vested interest in Dr. Sulaiman Al Habib Medical Services Group's growth, as seen by their sizeable ownership
• The top 2 shareholders own 69% 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 Dr. Sulaiman Al Habib Medical Services Group Company (TADAWUL:4013), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 42% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

So, insiders of Dr. Sulaiman Al Habib Medical Services Group have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.

Let's take a closer look to see what the different types of shareholders can tell us about Dr. Sulaiman Al Habib Medical Services Group.

See our latest analysis for Dr. Sulaiman Al Habib Medical Services Group

What Does The Institutional Ownership Tell Us About Dr. Sulaiman Al Habib Medical Services Group?

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.

Less than 5% of Dr. Sulaiman Al Habib Medical Services Group is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

We note that hedge funds don't have a meaningful investment in Dr. Sulaiman Al Habib Medical Services Group. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Dr. Sulaiman Al Habib Medical Services Group's case, its Top Key Executive, Sulaiman Bin Abdulaziz Al Habib, is the largest shareholder, holding 40% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 29% and 2.0%, of the shares outstanding, respectively. Interestingly, the third-largest shareholder, Hesham Al Habib is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Dr. Sulaiman Al Habib Medical Services Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 most recent data indicates that insiders own a reasonable proportion of Dr. Sulaiman Al Habib Medical Services Group Company. Insiders own ر.س44b worth of shares in the ر.س105b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Dr. Sulaiman Al Habib Medical Services Group. 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.

Private Company Ownership

Our data indicates that Private Companies hold 29%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 2 warning signs for Dr. Sulaiman Al Habib Medical Services Group (1 shouldn't be ignored) that you should be aware of.

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.