Key Insights

• Given the large stake in the stock by institutions, Qatar Gas Transport Company Limited (Nakilat) (QPSC)’s stock price might be vulnerable to their trading decisions
• The top 2 shareholders own 51% of the company
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of Qatar Gas Transport Company Limited (Nakilat) (QPSC) (DSM:QGTS), it is important to understand the ownership structure of the business. We can see that institutions own the lion’s share in the company with 45% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.

Let’s take a closer look to see what the different types of shareholders can tell us about Qatar Gas Transport Company Limited (Nakilat) (QPSC).

See our latest analysis for Qatar Gas Transport Company Limited (Nakilat) (QPSC)

What Does The Institutional Ownership Tell Us About Qatar Gas Transport Company Limited (Nakilat) (QPSC)?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Qatar Gas Transport Company Limited (Nakilat) (QPSC). This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Qatar Gas Transport Company Limited (Nakilat) (QPSC), (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don’t have many shares in Qatar Gas Transport Company Limited (Nakilat) (QPSC). Milaha Capital is currently the company’s largest shareholder with 36% of shares outstanding. For context, the second largest shareholder holds about 14% of the shares outstanding, followed by an ownership of 2.0% by the third-largest shareholder.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Qatar Gas Transport Company Limited (Nakilat) (QPSC)

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that Qatar Gas Transport Company Limited (Nakilat) (QPSC) insiders own under 1% of the company. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around ر.ق661k worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 41% stake in Qatar Gas Transport Company Limited (Nakilat) (QPSC). This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand Qatar Gas Transport Company Limited (Nakilat) (QPSC) better, we need to consider many other factors. Be aware that Qatar Gas Transport Company Limited (Nakilat) (QPSC) is showing 2 warning signs in our investment analysis , and 1 of those doesn’t sit too well with us…

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com