• Tue. Nov 22nd, 2022

After the recent decline, the holdings of Dr. Sulaiman Al Habib Medical Services Group Company (TADAWUL:4013) Top Key Executive Sulaiman Bin Abdulaziz Al Habib lost 4.7% of their value

ByMadeleine J. Pierce

Nov 14, 2022

A look at the shareholders of Dr. Sulaiman Al Habib Medical Services Group (TADAWUL:4013) can tell us which group is more powerful. With a 42% stake, individual insiders own the most shares in the company. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).

As the market capitalization fell to £74billion last week, insiders would have suffered the highest losses than any other group of shareholders in the company.

In the table below, we zoom in on the different ownership groups of Dr. Sulaiman Al Habib Medical Services Group.

Check opportunities and risks within the SA Healthcare industry.

SASE:4013 Ownership Distribution November 14, 2022

What does institutional ownership tell us about Dr. Sulaiman Al Habib’s medical services group?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

Since institutions only own a small portion of Dr. Sulaiman Al Habib’s medical services group, many may not have spent much time considering the stock. But it is clear that some did; and they liked her enough to join. So if the business itself can improve over time, we may well see more institutional buyers in the future. When several institutional investors wish to buy shares, we often see a rise in the price of the share. Past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

earnings-and-revenue-growth
SASE: 4013 Earnings and Revenue Growth November 14, 2022

Dr. Sulaiman Al Habib’s medical services group is not owned by hedge funds. From our data, we deduce that the largest shareholder is Sulaiman Bin Abdulaziz Al Habib (who also holds the title of Top Key Executive) with 40% of the outstanding shares. It’s generally considered a good sign when insiders hold a significant amount of stock in the company, and in that case, we’re happy to see a company insider act as a key stakeholder. For context, the second shareholder owns approximately 34% of the outstanding shares, followed by a 2.0% stake by the third shareholder. Interestingly, the third largest shareholder, Hesham Al-Habib is also a member of the board, again indicating strong insider ownership among the company’s major shareholders.

To make our study more interesting, we found that the top 2 shareholders hold a majority stake in the company, which means they are powerful enough 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 a stock’s expected performance. A number of analysts cover the stock, so you can look at growth forecasts quite easily.

Insider owned by Dr. Sulaiman Al Habib Medical Services Group

The definition of an insider may differ slightly from country to country, but board members still matter. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

It appears that insiders hold a large share of the Dr. Sulaiman Al Habib Medical Services Group company. Insiders hold £31bn worth of shares in the £74bn company. It is quite significant. Good to see this level of investment. You can check here if these insiders have bought recently.

General public property

With a 21% stake, the general public, consisting mainly of individual investors, has some influence over Dr. Sulaiman Al Habib Medical Services Group. While that size of ownership might not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Private Company Ownership

It appears that private companies own 34% of the shares of Dr. Sulaiman Al Habib’s medical services group. It might be worth exploring this further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information.

I always like to check a revenue growth history. You can also, by accessing this free revenue and profit history chart in this detailed graph.

If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

Valuation is complex, but we help make it simple.

Find out if Dr. Sulaiman Al Habib Medical Services Group is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.