What You Need To Know About Saudi Pharmaceutical Industries and Medical Appliances Corporation's (TADAWUL:2070) Investor Composition

The big shareholder groups in Saudi Pharmaceutical Industries and Medical Appliances Corporation (TADAWUL:2070) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

With a market capitalization of ر.س4.7b, Saudi Pharmaceutical Industries and Medical Appliances is a decent size, so it is probably on the radar of institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Saudi Pharmaceutical Industries and Medical Appliances.

See our latest analysis for Saudi Pharmaceutical Industries and Medical Appliances

What Does The Institutional Ownership Tell Us About Saudi Pharmaceutical Industries and Medical Appliances?

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 Saudi Pharmaceutical Industries and Medical Appliances. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Saudi Pharmaceutical Industries and Medical Appliances, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Saudi Pharmaceutical Industries and Medical Appliances. Our data shows that Arab Company for Drug Industries & Medical Supplies is the largest shareholder with 20% of shares outstanding. Amin Mohammed Shakir is the second largest shareholder owning 13% of common stock, and Public Pension Agency holds about 8.2% of the company stock.

On studying our ownership data, we found that 22 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Saudi Pharmaceutical Industries and Medical Appliances

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.

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 maintain a significant holding in Saudi Pharmaceutical Industries and Medical Appliances Corporation. It is very interesting to see that insiders have a meaningful ر.س620m stake in this ر.س4.7b business. 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, mostly retail investors, hold a substantial 55% stake in Saudi Pharmaceutical Industries and Medical Appliances, suggesting it is a fairly popular stock. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

It seems that Private Companies own 20%, of the Saudi Pharmaceutical Industries and Medical Appliances stock. 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 Saudi Pharmaceutical Industries and Medical Appliances better, we need to consider many other factors. Take risks for example - Saudi Pharmaceutical Industries and Medical Appliances has 2 warning signs we think you should be aware of.

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. 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.
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