Insiders were the main beneficiaries as the market capitalization of Banan Real Estate Company (TADAWUL: 9519) rises to £1.2 billion

To get an idea of ​​who really controls Banan Real Estate Company (TADAWUL:9519), it is important to understand the ownership structure of the company. We can see that individual insiders hold the lion’s share of the company with 80% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).

Clearly, insiders benefited the most after the company’s market capitalization rose by £294m last week.

In the table below we zoom in on the different property groups of Banan Real Estate.

Check opportunities and risks within the real estate industry SA.

SASE: 9519 Distribution of ownership November 21, 2022

What does the lack of institutional ownership tell us about Banan Real Estate?

Small companies that are not very actively traded often lack institutional investors, but it is less common to see large companies without them.

There are several explanations why institutions do not own stocks. The most common is that the business is too small relative to the funds under management, so the institution doesn’t bother to look closely at the business. On the other hand, it’s always possible for professional investors to avoid a company because they think it’s not the best place for their money. Banan Real Estate’s earnings and revenue (below) may not be compelling for institutional investors – or they may simply not have examined the business closely.

earnings-and-revenue-growth
SASE: 9519 Earnings and Revenue Growth November 21, 2022

Banan Real Estate does not belong to hedge funds. Our data shows that Abdulmohsen Saleh Al-Hakqani is the largest shareholder with 63% of the outstanding shares. This essentially means that they have considerable influence, if not absolute control, over the future of the company. Ahmed Abdulaziz Al-Haqbani is the second largest shareholder holding 8.5% of the common shares, and Ahmad Abdulrahman Saleh Al-Haqbani owns about 7.9% of the company’s shares.

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. As far as we can tell, there’s no analyst coverage of the company, so it’s probably flying under the radar.

Banan Real Estate Insider Ownership

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

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 information suggests that insiders own more than half of Banan Real Estate Company. This gives them effective control of the business. So they have a £960m stake in this £1.2bn business. Good to see this level of investment. You can check here if these insiders have bought recently.

General public property

The general public, including retail investors, owns 20% of the company’s capital and therefore cannot be easily ignored. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Take risks for example – Banan Real Estate has 1 warning sign we think you should know.

Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.

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 Banana Real Estate 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.


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