Stock Analysis

Individual investors own 43% of SABIC Agri-Nutrients Company (TADAWUL:2020) shares but public companies control 50% of the company

SASE:2020
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Key Insights

  • Significant control over SABIC Agri-Nutrients by public companies implies that the general public has more power to influence management and governance-related decisions
  • The largest shareholder of the company is Saudi Arabian Oil Company with a 50% stake
  • Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

Every investor in SABIC Agri-Nutrients Company (TADAWUL:2020) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 50% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And individual investors on the other hand have a 43% ownership in the company.

Let's delve deeper into each type of owner of SABIC Agri-Nutrients, beginning with the chart below.

Check out our latest analysis for SABIC Agri-Nutrients

ownership-breakdown
SASE:2020 Ownership Breakdown June 14th 2024

What Does The Institutional Ownership Tell Us About SABIC Agri-Nutrients?

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.

SABIC Agri-Nutrients already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see SABIC Agri-Nutrients' historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
SASE:2020 Earnings and Revenue Growth June 14th 2024

We note that hedge funds don't have a meaningful investment in SABIC Agri-Nutrients. Our data shows that Saudi Arabian Oil Company is the largest shareholder with 50% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. The Vanguard Group, Inc. is the second largest shareholder owning 2.0% of common stock, and BlackRock, Inc. holds about 1.5% of the company stock.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of SABIC Agri-Nutrients

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 information suggests that SABIC Agri-Nutrients Company insiders own under 1% of the company. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own ر.س3.7m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 43% ownership, the general public, mostly comprising of individual investors, have some degree of sway over SABIC Agri-Nutrients. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

It appears to us that public companies own 50% of SABIC Agri-Nutrients. 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 SABIC Agri-Nutrients better, we need to consider many other factors. Take risks for example - SABIC Agri-Nutrients has 2 warning signs we think you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.

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

Find out whether SABIC Agri-Nutrients 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.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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

Find out whether SABIC Agri-Nutrients 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.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com