The National Bank of Ras Al-Khaimah (P.S.C.)'s (ADX:RAKBANK) top owners are state or government with 49% stake, while 44% is held by individual investors

Key Insights

• National Bank of Ras Al-Khaimah (P.S.C.)'s significant state or government ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 2 shareholders own 56% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of The National Bank of Ras Al-Khaimah (P.S.C.) (ADX:RAKBANK) can tell us which group is most powerful. The group holding the most number of shares in the company, around 49% to be precise, is state or government. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And individual investors on the other hand have a 44% ownership in the company.

Let's take a closer look to see what the different types of shareholders can tell us about National Bank of Ras Al-Khaimah (P.S.C.).

Check out our latest analysis for National Bank of Ras Al-Khaimah (P.S.C.)

What Does The Lack Of Institutional Ownership Tell Us About National Bank of Ras Al-Khaimah (P.S.C.)?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. National Bank of Ras Al-Khaimah (P.S.C.)'s earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

We note that hedge funds don't have a meaningful investment in National Bank of Ras Al-Khaimah (P.S.C.). Looking at our data, we can see that the largest shareholder is Ras Al Khaimah (Emirate of) with 49% of shares outstanding. With 6.9% and 0.03% of the shares outstanding respectively, Ahmed Al Naeem and Amundi Asset Management SAS are the second and third largest shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 56% stake.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of National Bank of Ras Al-Khaimah (P.S.C.)

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

We can see that insiders own shares in The National Bank of Ras Al-Khaimah (P.S.C.). The insiders have a meaningful stake worth د.إ705m. Most would see this as a real positive. It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 44% ownership, the general public, mostly comprising of individual investors, have some degree of sway over National Bank of Ras Al-Khaimah (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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with National Bank of Ras Al-Khaimah (P.S.C.) .

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.