Retail investors invested in Middle East Company for Manufacturing and Producing Paper (TADAWUL:1202) copped the brunt of last week's ر.س195m market cap decline

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
• A total of 17 investors have a majority stake in the company with 41% ownership
• 14% of Middle East Company for Manufacturing and Producing Paper is held by Institutions

Every investor in Middle East Company for Manufacturing and Producing Paper (TADAWUL:1202) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 59% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 5.9% decline in share price, retail investors suffered the most losses.

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

Check out 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?

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.

As you can see, institutional investors have a fair amount of stake in Middle East Company for Manufacturing and Producing Paper. 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 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. Meanwhile, the second and third largest shareholders, hold 9.2% and 3.7%, of the shares outstanding, respectively.

A deeper look at our ownership data shows that the top 17 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

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. 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.

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 some shares in Middle East Company for Manufacturing and Producing Paper. As individuals, the insiders collectively own ر.س126m worth of the ر.س3.1b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

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 size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

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. Be aware that Middle East Company for Manufacturing and Producing Paper is showing 1 warning sign in our investment analysis , you should know about...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.