Do Institutions Own Emirates Insurance Company P.J.S.C. (ADX:EIC) Shares?

If you want to know who really controls Emirates Insurance Company P.J.S.C. (ADX:EIC), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that have been privatized tend to have low insider ownership.

Emirates Insurance Company P.J.S.C is a smaller company with a market capitalization of د.إ1.1b, so it may still be flying under the radar of many institutional investors. 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 Emirates Insurance Company P.J.S.C.

View our latest analysis for Emirates Insurance Company P.J.S.C

What Does The Institutional Ownership Tell Us About Emirates Insurance Company P.J.S.C?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Emirates Insurance Company P.J.S.C already has institutions on the share registry. Indeed, they own 12% of the company. 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 Emirates Insurance Company P.J.S.C's earnings history, below. Of course, the future is what really matters.

Hedge funds don't have many shares in Emirates Insurance Company P.J.S.C. Mazrui Holdings L.L.C. is currently the company's largest shareholder with 15% of shares outstanding. Next, we have Al Dhabi Investment and Abu Dhabi Investment Council as the second and third largest shareholders, holding 12% and 12%, of the shares outstanding, respectively.

A deeper look at our ownership data shows that the top 11 shareholders collectively hold less than 50% of the register, suggesting a large group of small holders where no one share holder has a majority.

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.

Insider Ownership Of Emirates Insurance Company P.J.S.C

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.

I can report that insiders do own shares in Emirates Insurance Company P.J.S.C.. As individuals, the insiders collectively own د.إ24m worth of the د.إ1.1b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are mostly retail investors, collectively hold 58% of Emirates Insurance Company P.J.S.C shares. With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.

Private Company Ownership

It seems that Private Companies own 15%, of the EIC stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 2 warning signs for Emirates Insurance Company P.J.S.C that you should be aware of.

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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