Insiders the biggest winners as Enma Al Rawabi Investment & Real Estate Development Company's (TADAWUL:9521) market cap rises to ر.س815m

Key Insights

• Insiders appear to have a vested interest in Enma Al Rawabi Investment & Real Estate Development's growth, as seen by their sizeable ownership
• The top 4 shareholders own 53% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Enma Al Rawabi Investment & Real Estate Development Company (TADAWUL:9521) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 65% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders were the biggest beneficiaries of last week’s 11% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Enma Al Rawabi Investment & Real Estate Development.

Check out our latest analysis for Enma Al Rawabi Investment & Real Estate Development

What Does The Lack Of Institutional Ownership Tell Us About Enma Al Rawabi Investment & Real Estate Development?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at 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 Enma Al Rawabi Investment & Real Estate Development, for yourself, below.

Enma Al Rawabi Investment & Real Estate Development is not owned by hedge funds. Our data shows that Fahad Ibrahim Al Mousa is the largest shareholder with 32% of shares outstanding. Anas Ibrahim Al Mousa is the second largest shareholder owning 6.9% of common stock, and Abdulaziz Ibrahim Almousa holds about 6.8% of the company stock. Abdulaziz Ibrahim Almousa, who is the third-largest shareholder, also happens to hold the title of Vice Chairman.

On looking further, we found that 53% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Enma Al Rawabi Investment & Real Estate Development

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. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems that insiders own more than half the Enma Al Rawabi Investment & Real Estate Development Company stock. This gives them a lot of power. That means they own ر.س531m worth of shares in the ر.س815m company. That's quite meaningful. 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, who are usually individual investors, hold a 35% stake in Enma Al Rawabi Investment & Real Estate Development. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 2 warning signs for Enma Al Rawabi Investment & Real Estate Development that you should be aware of before investing here.

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.