The big shareholder groups in Saudi Airlines Catering Company (TADAWUL:6004) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.
Saudi Airlines Catering has a market capitalization of ر.س6.6b, so we would expect some institutional investors to have noticed the stock. In the chart below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Saudi Airlines Catering.
See our latest analysis for Saudi Airlines Catering
SASE:6004 Ownership Breakdown August 13th 2021
What Does The Institutional Ownership Tell Us About Saudi Airlines Catering?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a fair amount of stake in Saudi Airlines Catering. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Saudi Airlines Catering's historic earnings and revenue below, but keep in mind there's always more to the story.
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