Stock Analysis

Are Institutions Heavily Invested In The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company's (TADAWUL:8030) Shares?

SASE:8030
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The big shareholder groups in The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (TADAWUL:8030) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

Mediterranean and Gulf Cooperative Insurance and Reinsurance is not a large company by global standards. It has a market capitalization of ر.س1.9b, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Mediterranean and Gulf Cooperative Insurance and Reinsurance.

View our latest analysis for Mediterranean and Gulf Cooperative Insurance and Reinsurance

ownership-breakdown
SASE:8030 Ownership Breakdown January 21st 2021

What Does The Institutional Ownership Tell Us About Mediterranean and Gulf Cooperative Insurance and Reinsurance?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Mediterranean and Gulf Cooperative Insurance and Reinsurance already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Mediterranean and Gulf Cooperative Insurance and Reinsurance, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SASE:8030 Earnings and Revenue Growth January 21st 2021

We note that hedge funds don't have a meaningful investment in Mediterranean and Gulf Cooperative Insurance and Reinsurance. The company's largest shareholder is The Saudi Investment Bank, Asset Management Arm, with ownership of 19%. With 17% and 10.0% of the shares outstanding respectively, SLH Holdings and A.Abunayyan Trading Corp. are the second and third largest shareholders.

Our studies suggest that the top 11 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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

Insider Ownership Of Mediterranean and Gulf Cooperative Insurance and Reinsurance

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. 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 less than 1% of The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company. But they may have an indirect interest through a corporate structure that we haven't picked up on. It seems the board members have no more than ر.س213k worth of shares in the ر.س1.9b company. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public, mostly retail investors, hold a substantial 51% stake in Mediterranean and Gulf Cooperative Insurance and Reinsurance, suggesting it is a fairly popular stock. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

We can see that Private Companies own 28%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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