A look at the shareholders of Ataa Educational Company (TADAWUL: 4292) can tell us which group is more powerful. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in smaller companies. Warren Buffett said he enjoys “a business with sustainable competitive advantages that is led by skilled, owner-oriented people.” So it’s nice to see some insider ownership as it may suggest that the management is owner-driven.
With a market capitalization of ر, س 2.7b, Ataa Educational is a small cap stock, so it might not be well known to many institutional investors. In the table below, we can see that the institutions are not entered in the share register. We can zoom in on the different ownership groups, to find out more about Ataa Educational.
Check out our latest analysis for Ataa Educational
What does the lack of institutional ownership tell us about Ataa Educational?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their liking. But it is unusual to see large companies without any institutional investor.
There can be various reasons why no institution owns shares in a company. Typically, small, newly listed companies do not attract much attention from fund managers, as it would not be possible for large fund managers to forge a meaningful position in the company. It is also possible that the fund managers do not own the stock because they are not convinced that it will perform well. Institutional investors may not find the company’s historical growth impressive, or there may be other factors at play. You can see for yourself the past earnings performance of Ataa Educational below.
We note that the hedge funds do not have a significant investment in Ataa Educational. Advanced National Creativity Trading Company is currently the largest shareholder in the company with 20% of the shares outstanding. For context, the second shareholder owns around 20% of the outstanding shares, followed by 15% ownership by the third shareholder.
To make our study more interesting, we found that the top 3 shareholders have a controlling stake in the company, which means that they are powerful enough to influence the decisions of the company.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. The title is covered by analysts, but it could become even more famous over time.
Insider property of Ataa Educational
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in certain circumstances.
Our information suggests that insiders have a significant stake in Ataa Educational Company. Insiders have a 535 million yen stake in the 2.7 billion yen company. This may suggest that the founders still own a lot of shares. You can click here to see if they bought or sold.
General public property
The general public, with a 41% stake in the company, will not be easily ignored. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
Owned by a private company
We note that private companies hold 40% of the issued shares. It is difficult to draw conclusions from this fact alone, so it is worth considering who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.
I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. Example: we have spotted 2 warning signs for Ataa Educational you must be aware.
But finally it’s the future, not the past, which will determine how well the owners of this business fare. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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