The recent pullback must have dismayed Jamjoom Pharmaceuticals Factory Company (TADAWUL:4015) insiders who own 70% of the company

Key Insights

• Significant insider control over Jamjoom Pharmaceuticals Factory implies vested interests in company growth
• The top 3 shareholders own 52% of the company
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of Jamjoom Pharmaceuticals Factory Company (TADAWUL:4015) can tell us which group is most powerful. 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 last week, insiders endured the biggest losses as the stock fell by 7.9%.

Let's take a closer look to see what the different types of shareholders can tell us about Jamjoom Pharmaceuticals Factory.

View our latest analysis for Jamjoom Pharmaceuticals Factory

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

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

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. Jamjoom Pharmaceuticals Factory's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

We note that hedge funds don't have a meaningful investment in Jamjoom Pharmaceuticals Factory. The company's largest shareholder is Yousuf Mohammed Salah Jamjoom, with ownership of 42%. In comparison, the second and third largest shareholders hold about 5.6% and 4.6% of the stock. 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.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Jamjoom Pharmaceuticals Factory

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

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. That means insiders have a very meaningful ر.س8.6b stake in this ر.س12b business. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

The general public, who are usually individual investors, hold a 29% stake in 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:

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. Case in point: We've spotted 1 warning sign for Jamjoom Pharmaceuticals Factory 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.

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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.