To understand who really controls the Saudi Marketing Company (TADAWUL:4006), it is important to understand the ownership structure of the business. And the group with the biggest piece of the pie are private insiders with 66% ownership. In other words, the group faces the greatest upside potential (or downside risk).

Clearly, insiders have benefited the most after the company’s market cap rose by €109 million last week.

The chart below expands on the various ownership groups of Saudi Marketing.

See our latest analysis on marketing in Saudi Arabia

Breakdown of ownership
SASE:4006 Ownership Breakdown October 3, 2022

What does the lack of organizational ownership tell us about Saudi marketing?

Institutional investors often avoid companies that are too small, too illiquid, or too risky for their tastes. However, large companies without institutional investors are rare.

There are multiple explanations for why institutional investors don’t own stocks. The most common is that the company is too small for the funds it manages and the institution does not look closely at it. Or maybe there’s something about the company that has kept institutional investors away. Institutional investors may find the historic growth of their business unimpressive, or other factors may be involved. You can view the past earnings performance of Saudi Marketing below.

revenue and revenue growth
SASE:4006 Revenue and Revenue Growth Oct 3, 2022

Note that hedge funds have not made meaningful investments in Saudi marketing. Currently, Hazem Bin Fayez Khalid Al Aswad is the largest shareholder, holding his 57% of the outstanding shares. It is speculated that they have a great deal of control over the company’s future as they have such a big stake in ownership. Mohammad Aswad and Tareq Aswad are the second and third largest shareholders with respectively 3.0% and he 2.9% of outstanding shares. Two of his top three shareholders happen to be senior key executives and board members, respectively. Insiders are thus high in the hierarchy of the company’s top shareholders. Additionally, CEO Maher Al Aswad owns his 2.9% stake in the company.

It makes sense to study institutional investor data for companies, but it also makes sense to study analyst sentiment to get an idea of ​​where the wind is heading. The company is probably not widely covered, although there is some analyst coverage. Therefore, it may attract more attention in the future.

Saudi Marketing Insider Ownership

The definition of an insider may vary slightly from country to country, but board members are always important. Management finally answers to the board. However, it is not uncommon for managers to be members of the board of directors, especially for founders and CEOs.

Insider ownership is positive if leadership shows that they think like true owners of the company. However, high insider ownership can also give greater power to smaller groups within the company. This can be negative in some situations.

Insiders appear to own more than half of the shares of the Saudi Marketing Company. This gives them great power. So they have his £695m stake in this £1bn business. Most people are happy that the board is investing with may want to discover (For free) if they were buying and selling.

general public

The general public, including private investors, own 33% of the company’s shares, so they can’t simply ignore it. Ownership of this magnitude may not be enough to move policy decisions in their favor, but they can still collectively influence company policy.

Next steps:

I think it will be very interesting to see who exactly owns the company. But for true insight, other information must also be considered.Note that Saudi Marketing shows One Warning Sign in Investment Analysis what you should know…

But in the end it’s the future, not the past will determine how well the owner of this business will do. Therefore, we encourage you to check out this free report that shows whether analysts are predicting a brighter future.

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

This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …

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