Insiders with their considerable ownership were the key benefactors as Enma Al Rawabi Investment & Real Estate Development Company (TADAWUL:9521) touches ر.س936m market cap

To get a sense of who is truly in control of Enma Al Rawabi Investment & Real Estate Development Company (TADAWUL:9521), it is important to understand the ownership structure of the business. With 65% stake, individual insiders 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).

As a result, insiders were the biggest beneficiaries of last week’s 27% gain.

Let’s delve deeper into each type of owner of Enma Al Rawabi Investment & Real Estate Development, beginning with the chart below.

Check out the opportunities and risks within the SA Real Estate industry.

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

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 could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don’t attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. Alternatively, there might be something about the company that has kept institutional investors away. 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.

Hedge funds don’t have many shares in Enma Al Rawabi Investment & Real Estate Development. Looking at our data, we can see that the largest shareholder is Fahad Ibrahim Al Mousa with 32% of shares outstanding. For context, the second largest shareholder holds about 6.9% of the shares outstanding, followed by an ownership of 6.8% by the third-largest shareholder. Abdulaziz Ibrahim Almousa, who is the third-largest shareholder, also happens to hold the title of Vice Chairman.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company’s decision-making.

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. We’re not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Enma Al Rawabi Investment & Real Estate Development

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 information suggests that insiders own more than half of Enma Al Rawabi Investment & Real Estate Development Company. This gives them effective control of the company. Given it has a market cap of ر.س936m, that means they have ر.س613m worth of shares. 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. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

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. For example, we’ve discovered 3 warning signs for Enma Al Rawabi Investment & Real Estate Development (2 are significant!) that you should be aware of before investing here.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.