Middle East Company for Manufacturing and Producing Paper's (TADAWUL:1202) largest shareholders are retail investors who were rewarded as market cap surged ر.س191m last week

Key Insights

• Middle East Company for Manufacturing and Producing Paper's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 16 shareholders own 41% of the company
• 14% of Middle East Company for Manufacturing and Producing Paper is held by Institutions

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A look at the shareholders of Middle East Company for Manufacturing and Producing Paper (TADAWUL:1202) can tell us which group is most powerful. With 59% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, retail investors were the biggest beneficiaries of last week’s 8.3% gain.

In the chart below, we zoom in on the different ownership groups of Middle East Company for Manufacturing and Producing Paper.

View our latest analysis for Middle East Company for Manufacturing and Producing Paper

What Does The Institutional Ownership Tell Us About Middle East Company for Manufacturing and Producing Paper?

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.

Middle East Company for Manufacturing and Producing Paper already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Middle East Company for Manufacturing and Producing Paper, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Middle East Company for Manufacturing and Producing Paper. Public Investment Fund is currently the largest shareholder, with 23% of shares outstanding. For context, the second largest shareholder holds about 9.2% of the shares outstanding, followed by an ownership of 3.7% by the third-largest shareholder.

A deeper look at our ownership data shows that the top 16 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Middle East Company for Manufacturing and Producing Paper

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.

We can see that insiders own shares in Middle East Company for Manufacturing and Producing Paper. In their own names, insiders own ر.س101m worth of stock in the ر.س2.5b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 59% of Middle East Company for Manufacturing and Producing Paper shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Middle East Company for Manufacturing and Producing Paper better, we need to consider many other factors.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.