Do Institutions Own Jarir Marketing Company (TADAWUL:4190) Shares?

By
Simply Wall St
Published
May 11, 2022
SASE:4190
Source: Shutterstock

The big shareholder groups in Jarir Marketing Company (TADAWUL:4190) 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.

Jarir Marketing is a pretty big company. It has a market capitalization of ر.س22b. Normally institutions would own a significant portion of a company this size. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Jarir Marketing.

See our latest analysis for Jarir Marketing

ownership-breakdown
SASE:4190 Ownership Breakdown May 11th 2022

What Does The Institutional Ownership Tell Us About Jarir Marketing?

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.

As you can see, institutional investors have a fair amount of stake in Jarir Marketing. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Jarir Marketing, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SASE:4190 Earnings and Revenue Growth May 11th 2022

We note that hedge funds don't have a meaningful investment in Jarir Marketing. Our data shows that Jarir Company For Commercial Investments is the largest shareholder with 22% of shares outstanding. The second and third largest shareholders are Nasser Al-Aqeel and Abdul Karim bin Rahman Al-Agil, with an equal amount of shares to their name at 3.2%. Abdul Karim bin Rahman Al-Agil, who is the third-largest shareholder, also happens to hold the title of Vice Chairman.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 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 Jarir Marketing

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.

It seems insiders own a significant proportion of Jarir Marketing Company. It has a market capitalization of just ر.س22b, and insiders have ر.س2.5b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 58% of Jarir Marketing shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

It seems that Private Companies own 22%, of the Jarir Marketing 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 Jarir Marketing better, we need to consider many other factors. For example, we've discovered 1 warning sign for Jarir Marketing that you should be aware of before investing here.

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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