Institutions along with retail investors who hold considerable shares inThe Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (TADAWUL:8030) come under pressure; lose 10% of holdings value

Key Insights

• Mediterranean and Gulf Cooperative Insurance and Reinsurance's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 8 investors have a majority stake in the company with 44% ownership
• Insider ownership in Mediterranean and Gulf Cooperative Insurance and Reinsurance is 12%

A look at the shareholders of The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (TADAWUL:8030) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 56% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While institutions who own 20% came under pressure after market cap dropped to ر.س2.6b last week,retail investors took the most losses.

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.

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

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

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.

We can see that Mediterranean and Gulf Cooperative Insurance and Reinsurance does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Mediterranean and Gulf Cooperative Insurance and Reinsurance's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Mediterranean and Gulf Cooperative Insurance and Reinsurance. The Saudi Investment Bank, Asset Management Arm is currently the largest shareholder, with 19% of shares outstanding. With 12% and 11% of the shares outstanding respectively, Rakan Abunayyan and SLH Holdings are the second and third largest shareholders.

Our studies suggest that the top 8 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.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Mediterranean and Gulf Cooperative Insurance and Reinsurance

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own a reasonable proportion of The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company. Insiders have a ر.س309m stake in this ر.س2.6b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public -- including retail investors -- own 56% of Mediterranean and Gulf Cooperative Insurance and Reinsurance. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

It seems that Private Companies own 11%, of the Mediterranean and Gulf Cooperative Insurance and Reinsurance stock. 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:

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. Take risks for example - Mediterranean and Gulf Cooperative Insurance and Reinsurance has 1 warning sign we think you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.