Al Taiseer Group TALCO Industrial Company (TADAWUL:4143) insiders, who hold 70% of the firm would be disappointed by the recent pullback

Key Insights

• Insiders appear to have a vested interest in Al Taiseer Group TALCO Industrial's growth, as seen by their sizeable ownership
• 58% of the company is held by a single shareholder (Mansour Kamel Al-Fattouh)
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of Al Taiseer Group TALCO Industrial Company (TADAWUL:4143), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 70% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 9.9% decline in share price, insiders suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Al Taiseer Group TALCO Industrial.

See our latest analysis for Al Taiseer Group TALCO Industrial

What Does The Lack Of Institutional Ownership Tell Us About Al Taiseer Group TALCO Industrial?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

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. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Al Taiseer Group TALCO Industrial, for yourself, below.

Hedge funds don't have many shares in Al Taiseer Group TALCO Industrial. Looking at our data, we can see that the largest shareholder is Mansour Kamel Al-Fattouh with 58% of shares outstanding. This implies that they have majority interest control of the future of the company. Nasser Kamel Ibrahim Al-Blwi is the second largest shareholder, holding 12%.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Al Taiseer Group TALCO Industrial

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders own more than half of Al Taiseer Group TALCO Industrial Company. This gives them effective control of the company. Given it has a market cap of ر.س2.3b, that means they have ر.س1.6b worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 30% stake in the company, and hence can't easily be ignored. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Al Taiseer Group TALCO Industrial , and understanding them should be part of your investment process.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.