National Building and Marketing Co. (TADAWUL:9510)’s largest shareholder and board member Fahad bin Al Tunayan expects the value of his holding to decline by 6.5%

key insights

• Significant insider control over National Building and Marketing means a vested interest in the company’s growth
• Fahad bin Al Tunayan owns 67% of the company
• A company’s past performance data, combined with ownership research, allows you to better assess a company’s future performance.

If you want to know who really controls National Building and Marketing Co. (TADAWUL:9510), you’ll have to take a look at the makeup of its share registry. The group with the largest stake in the company (about 67% to be exact) are individual insiders. In other words, this group faces the greatest upside potential (or downside risk).

As a result, the market capitalization fell by €211m, with insiders suffering the biggest losses for the group as a whole.

The diagram below zooms in on the various ownership groups for National Building and Marketing.

Get the latest analysis on nation building and marketing.

What does the lack of institutional ownership tell us about nation-building and marketing?

Institutional investors often avoid companies that are too small, too illiquid, or too risky for their tastes. However, it is unusual for large companies to have no institutional investors.

There are multiple explanations as to why institutions don’t own shares. Most commonly, financial institutions are unwilling to take a closer look at the company because it is too small compared to the funds under management. On the other hand, there’s always the possibility that professional investors are avoiding a company because they don’t think it’s the best place for their money. Institutional investors may not be impressed by the business’s historic growth. Alternatively, other factors may be at play. You can see National Building and Marketing’s past earnings performance below.

Note that hedge funds have no meaningful investments in nation building and marketing. Our data shows that Fahad bin Al Tunayan, who is also a member of the company’s Board of Directors, holds the largest number of shares at 67%. Investors consider it a positive sign when insiders own a significant stake in a company, as it suggests that they are willing to tie their wealth to the company’s future. Masu. Mr. Obaid bin Al Subaie is the second largest shareholder owning 0.01% of the common stock, and Mr. Mohammed Iqbal Dabur holds approximately 0.001% of the company’s stock. We note that two of the top three shareholders are also members of the board of directors and vice chairman respectively, again pointing to significant ownership by company insiders.

While researching 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 as we know, there isn’t any analyst coverage of the company, so it’s probably flying under the radar.

Insider ownership of national buildings and marketing

The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be members of the board of directors. This is especially true if the manager is the founder or CEO.

Insider ownership is positive when it signals leaders 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 depending on the situation.

It appears that insiders own more than half of National Building and Marketing Co.’s shares. This gives them great power. Considering that the company’s market capitalization is 3.1 billion yen, he owns 2.1 billion yen worth of shares. Most would argue that this is a positive thing, as it shows strong alignment with shareholders. You can click here to see if insiders have been buying or selling.

Public ownership

The general public, typically retail investors, owns 33% of National Building and Marketing’s shares. While this group doesn’t necessarily call the shots, it can certainly have a big influence on how the company is run.

Next steps:

It’s always worth thinking about the different groups who own shares in a company. However, to better understand nation building and marketing, many other factors need to be considered. For example, we discovered that 4 Warning Signs About Nation Building and Marketing (Two things are important!) You should be careful before investing here.

of course, You may find a great investment if you look elsewhere. So take a look at this free List of interesting companies.

Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.