Retail investors invested in Perfect Presentation for Commercial Services Company (TADAWUL:7204) copped the brunt of last week's ر.س465m market cap decline

Key Insights

• Significant control over Perfect Presentation for Commercial Services by retail investors implies that the general public has more power to influence management and governance-related decisions
• A total of 15 investors have a majority stake in the company with 44% ownership
• 20% of Perfect Presentation for Commercial Services is held by insiders

A look at the shareholders of Perfect Presentation for Commercial Services Company (TADAWUL:7204) can tell us which group is most powerful. With 56% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 9.5% decline in share price, retail investors suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Perfect Presentation for Commercial Services.

See our latest analysis for Perfect Presentation for Commercial Services

What Does The Lack Of Institutional Ownership Tell Us About Perfect Presentation for Commercial Services?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

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. Alternatively, there might be something about the company that has kept institutional investors away. Perfect Presentation for Commercial Services might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Hedge funds don't have many shares in Perfect Presentation for Commercial Services. The Ideal for Business and Investment Trade Company is currently the largest shareholder, with 23% of shares outstanding. The second and third largest shareholders are Saleh Al Mazroua and Nasser Albassam, with an equal amount of shares to their name at 9.1%. Nasser Albassam, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

Our studies suggest that the top 15 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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Perfect Presentation for Commercial Services

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

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.

It seems insiders own a significant proportion of Perfect Presentation for Commercial Services Company. It is very interesting to see that insiders have a meaningful ر.س899m stake in this ر.س4.4b business. 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, who are usually individual investors, hold a substantial 56% stake in Perfect Presentation for Commercial Services, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

Our data indicates that Private Companies hold 23%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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 2 warning signs for Perfect Presentation for Commercial Services you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.