Retail investors in Al Masane Al Kobra Mining Company (TADAWUL:1322) are its biggest bettors, and their bets paid off as stock gained 6.7% last week

Key Insights

• The considerable ownership by retail investors in Al Masane Al Kobra Mining indicates that they collectively have a greater say in management and business strategy
• 49% of the business is held by the top 23 shareholders
• 10% of Al Masane Al Kobra Mining is held by insiders

A look at the shareholders of Al Masane Al Kobra Mining Company (TADAWUL:1322) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 50% ownership. 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 6.7% gain.

Let's delve deeper into each type of owner of Al Masane Al Kobra Mining, beginning with the chart below.

See our latest analysis for Al Masane Al Kobra Mining

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.

As you can see, institutional investors have a fair amount of stake in Al Masane Al Kobra Mining. 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 Al Masane Al Kobra Mining, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Al Masane Al Kobra Mining. Arab Mining Company is currently the company's largest shareholder with 14% of shares outstanding. Asas Mining Company is the second largest shareholder owning 14% of common stock, and National Industrialization Company holds about 6.2% of the company stock.

On studying our ownership data, we found that 23 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

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.

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 information suggests that insiders maintain a significant holding in Al Masane Al Kobra Mining Company. It is very interesting to see that insiders have a meaningful ر.س563m stake in this ر.س5.6b business. 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 substantial 50% stake in Al Masane Al Kobra Mining, suggesting it is a fairly popular stock. 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.

Private Company Ownership

It seems that Private Companies own 28%, of the Al Masane Al Kobra Mining stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

We can see that public companies hold 6.2% of the Al Masane Al Kobra Mining shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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. To that end, you should learn about the 2 warning signs we've spotted with Al Masane Al Kobra Mining (including 1 which is potentially serious) .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.