Stock Analysis

Al Yamamah Steel Industries Company's (TADAWUL:1304) largest shareholders are individual investors who were rewarded as market cap surged ر.س126m last week


Key Insights

  • Al Yamamah Steel Industries' significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • The top 13 shareholders own 43% 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 Al Yamamah Steel Industries Company (TADAWUL:1304) can tell us which group is most powerful. The group holding the most number of shares in the company, around 57% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, individual investors benefitted the most after the company's market cap rose by ر.س126m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Al Yamamah Steel Industries.

Check out our latest analysis for Al Yamamah Steel Industries

SASE:1304 Ownership Breakdown January 3rd 2024

What Does The Lack Of Institutional Ownership Tell Us About Al Yamamah Steel Industries?

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

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. 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. Al Yamamah Steel Industries' earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

SASE:1304 Earnings and Revenue Growth January 3rd 2024

Al Yamamah Steel Industries is not owned by hedge funds. The company's largest shareholder is Al Moajel Trading and Contracting Company, with ownership of 10.0%. Meanwhile, the second and third largest shareholders, hold 9.6% and 8.0%, of the shares outstanding, respectively.

A deeper look at our ownership data shows that the top 13 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. 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 Al Yamamah Steel Industries

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 some shares in Al Yamamah Steel Industries Company. As individuals, the insiders collectively own ر.س109m worth of the ر.س1.3b 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, who are usually individual investors, hold a substantial 57% stake in Al Yamamah Steel Industries, suggesting it is a fairly popular stock. 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.

Private Company Ownership

We can see that Private Companies own 34%, of the shares on issue. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Al Yamamah Steel Industries better, we need to consider many other factors. For example, we've discovered 1 warning sign for Al Yamamah Steel Industries that you should be aware of before investing here.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Al Yamamah Steel Industries is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.