National Environmental Recycling Company’s (TADAWUL:9540) market cap increased by ر.س89m, insiders receive a … – Simply Wall St

Key Insights

• Insiders appear to have a vested interest in National Environmental Recycling’s growth, as seen by their sizeable ownership
• The top 3 shareholders own 50% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls National Environmental Recycling Company (TADAWUL:9540), then you’ll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 52% ownership. 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 scored the highest last week as the company hit ر.س683m market cap following a 15% gain in the stock.

Let’s delve deeper into each type of owner of National Environmental Recycling, beginning with the chart below.

View our latest analysis for National Environmental Recycling

What Does The Lack Of Institutional Ownership Tell Us About National Environmental Recycling?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it’s unusual to see larger companies without any institutional investors.

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. National Environmental Recycling might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

National Environmental Recycling is not owned by hedge funds. Our data shows that Eyad Abdulaziz Al Nafea is the largest shareholder with 25% of shares outstanding. For context, the second largest shareholder holds about 23% of the shares outstanding, followed by an ownership of 2.3% by the third-largest shareholder. Nasser Muhammad Al Dueb, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company’s shares, implying that they have considerable power to influence the company’s decisions.

While studying 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. 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 National Environmental Recycling

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Insider ownership is positive when it signals leadership 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 in some circumstances.

Our information suggests that insiders own more than half of National Environmental Recycling Company. This gives them effective control of the company. That means they own ر.س355m worth of shares in the ر.س683m company. That’s quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 48% ownership, the general public, mostly comprising of individual investors, have some degree of sway over National Environmental Recycling. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that National Environmental Recycling is showing 2 warning signs in our investment analysis , you should know about…

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.