Owning 70% in Jamjoom Pharmaceuticals Factory Company (TADAWUL:4015) means that insiders are heavily invested in the company's future

Key Insights

• Significant insider control over Jamjoom Pharmaceuticals Factory implies vested interests in company growth
• 52% of the business is held by the top 3 shareholders
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

To get a sense of who is truly in control of Jamjoom Pharmaceuticals Factory Company (TADAWUL:4015), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 70% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

So it follows, every decision made by insiders of Jamjoom Pharmaceuticals Factory regarding the company's future would be crucial to them.

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

View our latest analysis for Jamjoom Pharmaceuticals Factory

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

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.

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. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. 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.

Hedge funds don't have many shares in Jamjoom Pharmaceuticals Factory. Yousuf Mohammed Salah Jamjoom is currently the company's largest shareholder with 42% of shares outstanding. With 5.6% and 4.6% of the shares outstanding respectively, Mahmoud Yousuf Mohammed Jamjoom and Alaa Yousuf Mohammed Jamjoom are the second and third largest shareholders. Alaa Yousuf Mohammed Jamjoom, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

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 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 Jamjoom Pharmaceuticals Factory

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 most recent data indicates that insiders own the majority of Jamjoom Pharmaceuticals Factory Company. This means they can collectively make decisions for the company. Given it has a market cap of ر.س9.7b, that means insiders have a whopping ر.س6.8b 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

With a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jamjoom Pharmaceuticals Factory. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jamjoom Pharmaceuticals Factory better, we need to consider many other factors.

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 would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.