A look at the shareholders of Dubai National Insurance & Reinsurance Co. (P.S.C.) (DFM:DNIR) can tell us which group is most powerful. With 28% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
While individual investors were the group that reaped the most benefits after last week’s 19% price gain, institutions also received a 28% cut.
Let's take a closer look to see what the different types of shareholders can tell us about Dubai National Insurance & Reinsurance (P.S.C.).
View our latest analysis for Dubai National Insurance & Reinsurance (P.S.C.)
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 Dubai National Insurance & Reinsurance (P.S.C.). 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Dubai National Insurance & Reinsurance (P.S.C.)'s earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Dubai National Insurance & Reinsurance (P.S.C.). Our data shows that Al Habtoor Investment is the largest shareholder with 28% of shares outstanding. In comparison, the second and third largest shareholders hold about 26% and 10% of the stock.
After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems insiders own a significant proportion of Dubai National Insurance & Reinsurance Co. (P.S.C.). It has a market capitalization of just د.إ372m, and insiders have د.إ97m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
The general public, who are usually individual investors, hold a 28% stake in Dubai National Insurance & Reinsurance (P.S.C.). 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.
It seems that Private Companies own 17%, of the Dubai National Insurance & Reinsurance (P.S.C.) stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Dubai National Insurance & Reinsurance (P.S.C.) has 4 warning signs (and 2 which shouldn't be ignored) we think you should know about.
Of course this may not be the best stock to buy. So take a peek at this free 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.
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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.