Insiders with their considerable ownership were the key benefactors as Jamjoom Pharmaceuticals Factory Company (TADAWUL:4015) touches ر.س12b market cap

Key Insights

• Insiders appear to have a vested interest in Jamjoom Pharmaceuticals Factory's growth, as seen by their sizeable ownership
• 52% of the business is held by the top 3 shareholders
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

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A look at the shareholders of Jamjoom Pharmaceuticals Factory Company (TADAWUL:4015) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 61% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders were the biggest beneficiaries of last week’s 4.6% gain.

In the chart below, we zoom in on the different ownership groups of Jamjoom Pharmaceuticals Factory.

Check out our latest analysis for Jamjoom Pharmaceuticals Factory

What Does The Institutional Ownership Tell Us About Jamjoom Pharmaceuticals Factory?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Institutions have a very small stake in Jamjoom Pharmaceuticals Factory. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Jamjoom Pharmaceuticals Factory is not owned by hedge funds. Yousuf Mohammed Salah Jamjoom is currently the largest shareholder, with 42% of shares outstanding. With 5.6% and 4.6% of the shares outstanding respectively, Mahmoud Yousuf Mohammed Jamjoom and Ahmed Yousuf Mohammed Jamjoom are the second and third largest shareholders. Ahmed Yousuf Mohammed Jamjoom, who is the third-largest shareholder, also happens to hold the title of Vice Chairman.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 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 Jamjoom Pharmaceuticals Factory

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

It seems that insiders own more than half the Jamjoom Pharmaceuticals Factory Company stock. This gives them a lot of power. Given it has a market cap of ر.س12b, that means insiders have a whopping ر.س7.5b worth of shares in their own names. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

The general public, who are usually individual investors, hold a 36% stake in Jamjoom Pharmaceuticals Factory. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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.

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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.