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

• Dr. Sulaiman Al Habib Medical Services Group's significant insider ownership suggests inherent interests in company's expansion
• The top 2 shareholders own 69% of the company
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

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Every investor in Dr. Sulaiman Al Habib Medical Services Group Company (TADAWUL:4013) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 42% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

So it follows, every decision made by insiders of Dr. Sulaiman Al Habib Medical Services Group regarding the company's future would be crucial to them.

Let's delve deeper into each type of owner of Dr. Sulaiman Al Habib Medical Services Group, beginning with the chart below.

Check out 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?

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.

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.

Hedge funds don't have many shares 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. With 29% and 2.0% of the shares outstanding respectively, Mohammed Abdulaziz Al-Habib and Sons Holding Company and Hisham Al Habib are the second and third largest shareholders. Interestingly, the third-largest shareholder, Hisham Al Habib is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 69% stake.

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. 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 company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders maintain a significant holding in Dr. Sulaiman Al Habib Medical Services Group Company. Insiders own ر.س38b worth of shares in the ر.س90b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 26% stake in Dr. Sulaiman Al Habib Medical Services Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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:

It's always worth thinking about the different groups who own shares in a company. But to understand Dr. Sulaiman Al Habib Medical Services Group better, we need to consider many other factors. For example, we've discovered 1 warning sign for Dr. Sulaiman Al Habib Medical Services Group that you should be aware of before investing here.

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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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.