What types of shareholders own the majority of shares in the Saudi Arabian mobile telecommunications company (TADAWUL: 7030)?

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The large shareholder groups of Mobile Telecommunications Company Saudi Arabia (TADAWUL: 7030) have power over the company. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. We also tend to see a decrease in insider ownership in companies that were previously state-owned.

With a market capitalization of 13 billion yen, the Saudi Arabian mobile telecommunications company is rather large. We would expect to see institutional investors on the register. Companies of this size are also generally well known to retail investors. Our analysis of company ownership, below, shows that institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Mobile Telecommunications Company Saudi Arabia.

See our latest review for Mobile Telecommunications Company Saudi Arabia

SASE: 7030 Distribution of ownership June 28, 2021

What does institutional ownership tell us about the Saudi Arabian mobile telecommunications company?

Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.

The Saudi Arabian mobile telecommunications company already has institutions listed in the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth looking at the profit history of the Saudi Arabian mobile company below. Of course, the future is what really matters.

profit and revenue growth
SASE: 7030 Revenue and Revenue Growth June 28, 2021

We note that the hedge funds do not have a significant investment in Mobile Telecommunications Company Saudi Arabia. Our data shows that United International Telecommunication Investment & Projects is the largest shareholder with 37% of the shares outstanding. For context, the second largest shareholder owns around 2.9% of the outstanding shares, followed by 1.9% ownership by the third largest shareholder.

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

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. Many analysts cover the stock, so you can look at expected growth quite easily.

Insider ownership of mobile telecommunications company Saudi Arabia

The definition of business insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our data suggests that insiders own less than 1% of Mobile Telecommunications Company Saudi Arabia in their own name. However, it is possible that insiders will have an indirect interest through a more complex structure. It’s a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case, insiders own 4.0 million yen of shares. It’s always good to see at least one insider property, but it may be worth checking out if those insiders have sold.

General public property

The general public – including retail investors – own 55% of Mobile Telecommunications Company Saudi Arabia. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder performance, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Owned by a private company

We note that private companies hold 40% of the issued shares. It is difficult to draw conclusions from this fact alone, so it is worth considering who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next steps:

While it is worth considering the different groups that own a business, there are other factors that are even more important. Take risks for example – Mobile Telecommunications Company Saudi Arabia a 4 warning signs (and 2 that are significant) we think you should be aware of.

If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.

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 date 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.

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