The recent 3.4% gain must have brightened Top Key Executive Sulaiman Bin Abdulaziz Al Habib's week, Dr. Sulaiman Al Habib Medical Services Group Company's (TADAWUL:4013) most bullish insider

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
• 74% of the business is held by the top 2 shareholders
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

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. With 42% 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.س3.7b last week.

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

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.

Since institutions own only a small portion of Dr. Sulaiman Al Habib Medical Services Group, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

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. Mohammed Abdulaziz Al-Habib and Sons Holding Company is the second largest shareholder owning 34% of common stock, and Hesham Al Habib holds about 2.0% of the company stock. 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 studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

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 information suggests that insiders maintain a significant holding in Dr. Sulaiman Al Habib Medical Services Group Company. It has a market capitalization of just ر.س114b, and insiders have ر.س48b worth of shares in their own names. That's quite significant. 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

With a 21% 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 34%, 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 1 warning sign for Dr. Sulaiman Al Habib Medical Services Group that you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.