Insiders were the key beneficiaries as Future Care Trading Co.'s (TADAWUL:9544) market cap rises to ر.س7.9b

Key Insights

• Significant insider control over Future Care Trading implies vested interests in company growth
• The top 2 shareholders own 71% of the company
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

A look at the shareholders of Future Care Trading Co. (TADAWUL:9544) can tell us which group is most powerful. The group holding the most number of shares in the company, around 75% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit ر.س7.9b market cap following a 7.7% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Future Care Trading.

See our latest analysis for Future Care Trading

What Does The Lack Of Institutional Ownership Tell Us About Future Care Trading?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Future Care Trading might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Hedge funds don't have many shares in Future Care Trading. Looking at our data, we can see that the largest shareholder is Walid Ahmed Naghi with 38% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 33% and 3.5%, of the shares outstanding, respectively. Mansour Abdulaziz Hashr, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Future Care Trading

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 most recent data indicates that insiders own the majority of Future Care Trading Co.. This means they can collectively make decisions for the company. Given it has a market cap of ر.س7.9b, that means insiders have a whopping ر.س5.9b worth of shares in their own names. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

With a 25% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Future Care Trading. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Future Care Trading better, we need to consider many other factors. Be aware that Future Care Trading is showing 3 warning signs in our investment analysis , and 2 of those are potentially serious...

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.