Stock Analysis

Is Taleem REIT Fund (TADAWUL:4333) Popular Amongst Insiders?

SASE:4333
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The big shareholder groups in Taleem REIT Fund (TADAWUL:4333) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

Taleem REIT Fund is a smaller company with a market capitalization of ر.س652m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutional investors have not yet purchased shares. Let's take a closer look to see what the different types of shareholders can tell us about Taleem REIT Fund.

View our latest analysis for Taleem REIT Fund

ownership-breakdown
SASE:4333 Ownership Breakdown January 6th 2021

What Does The Lack Of Institutional Ownership Tell Us About Taleem REIT Fund?

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 many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Taleem REIT Fund might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

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SASE:4333 Earnings and Revenue Growth January 6th 2021

Hedge funds don't have many shares in Taleem REIT Fund. Looking at our data, we can see that the largest shareholder is Mohammed Bin Ahmed Al-Rasheed & Sons Holding Co. with 40% of shares outstanding. Fawaz bin Suliman AlRajhi is the second largest shareholder, holding 16%.

To make our study more interesting, we found that the top 2 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. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Taleem REIT Fund

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.

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.

Our most recent data indicates that insiders own a reasonable proportion of Taleem REIT Fund. Insiders have a ر.س102m stake in this ر.س652m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public holds a 44% stake in Taleem REIT Fund. 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.

Private Company Ownership

It seems that Private Companies own 40%, of the Taleem REIT Fund 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 Taleem REIT Fund better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Taleem REIT Fund , and understanding them should be part of your investment process.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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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