Stock Analysis

Retail investors among Al Masane Al Kobra Mining Company's (TADAWUL:1322) largest shareholders, saw gain in holdings value after stock jumped 9.3% last week

SASE:1322
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Key Insights

  • Significant control over Al Masane Al Kobra Mining by retail investors implies that the general public has more power to influence management and governance-related decisions
  • A total of 17 investors have a majority stake in the company with 50% ownership
  • Insiders own 11% of Al Masane Al Kobra Mining

If you want to know who really controls Al Masane Al Kobra Mining Company (TADAWUL:1322), then you'll have to look at the makeup of its share registry. With 50% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, retail investors were the biggest beneficiaries of last week’s 9.3% gain.

In the chart below, we zoom in on the different ownership groups of Al Masane Al Kobra Mining.

Check out our latest analysis for Al Masane Al Kobra Mining

ownership-breakdown
SASE:1322 Ownership Breakdown February 20th 2024

What Does The Institutional Ownership Tell Us About Al Masane Al Kobra Mining?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Less than 5% of Al Masane Al Kobra Mining is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

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SASE:1322 Earnings and Revenue Growth February 20th 2024

We note that hedge funds don't have a meaningful investment in Al Masane Al Kobra Mining. Looking at our data, we can see that the largest shareholder is Arab Mining Company with 14% of shares outstanding. In comparison, the second and third largest shareholders hold about 14% and 6.2% of the stock.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 17 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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 Masane Al Kobra Mining

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 a reasonable proportion of Al Masane Al Kobra Mining Company. It has a market capitalization of just ر.س5.5b, and insiders have ر.س606m worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 50% stake in Al Masane Al Kobra Mining. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

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.

Public Company Ownership

It appears to us that public companies own 6.2% of Al Masane Al Kobra Mining. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Al Masane Al Kobra Mining better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Al Masane Al Kobra Mining you should be aware of.

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.

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

Find out whether Al Masane Al Kobra Mining 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.