What type of shareholders owns the largest number of shares in Arabian Centers (TADAWUL: 4321)?
Every investor in Arabian Centers Company (TADAWUL: 4321) should know the most powerful shareholder groups. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. Warren Buffett said he enjoys “a business with sustainable competitive advantages, led by skilled people and owner-centered.” So it’s nice to see some insider ownership as it may suggest that the management is owner-driven.
Arabian Centers is a fairly large company. It has a market capitalization of .س 12b. Normally, institutions would own a significant share of a company of this size. Looking at our data on ownership groups (below), it appears that institutions are not really present on the share register. We can zoom in on the different ownership groups, to find out more about the Arab Centers.
Check out our latest analysis for Arab centers
What does institutional ownership tell us about Arab centers?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. . We would expect most businesses to have some institutions listed, especially if they are growing.
Less than 5% of Arabian Centers are owned by institutional investors. This suggests that some funds have their sights set on the company, but many have yet to buy any shares. So if the business itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a sharp rise in stock prices if several institutional investors attempt to buy a stock at the same time. So check out the historical earnings path below, but keep in mind that it’s the future that matters most.
We note that hedge funds do not have a significant investment in Arab centers. Saudi Fas Holding Co Ltd is currently the largest shareholder, with 42% of the shares outstanding. Meanwhile, the second and third shareholders hold 8.6% and 8.0% of the outstanding shares respectively.
After digging a little deeper, we found that the top 2 shareholders collectively control over half of the company’s stock, implying that they have considerable power to influence company decisions.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There are a lot of analysts covering the stock, so you can look at expected growth quite easily.
Insider ownership of Arab centers
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
Most view insider ownership as a positive, as it can indicate that 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 Arabian Centers Company. Insiders hold ر.س 3.0 b of shares in the company ر.س 12 b. It is quite significant. It’s good to see this level of investment. You can check here if these insiders have bought recently.
General public property
The general public holds 19% of the capital of Arabian Centers. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
Owned by a private company
Our data indicates that private companies own 54% of the company’s shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as an individual. While it is difficult to draw general conclusions, it should be noted that this is an additional area of research.
It’s always worth thinking about the different groups that own shares in a company. But to better understand the Arab centers, there are many other factors that we need to take into account. Be aware that Arabian Centers displays 3 warning signs in our investment analysis , and 2 of them don’t sit too well with us …
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last day of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
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