National Bank of Umm Al-Qaiwain (PSC)'s (ADX:NBQ) biggest owners are retail investors who got richer after stock soared 11% last week

Key Insights

• The considerable ownership by retail investors in National Bank of Umm Al-Qaiwain (PSC) indicates that they collectively have a greater say in management and business strategy
• The top 3 shareholders own 53% of the company
• Insider ownership in National Bank of Umm Al-Qaiwain (PSC) is 19%

To get a sense of who is truly in control of National Bank of Umm Al-Qaiwain (PSC) (ADX:NBQ), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 41% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, retail investors were the biggest beneficiaries of last week’s 11% gain.

Let's take a closer look to see what the different types of shareholders can tell us about National Bank of Umm Al-Qaiwain (PSC).

Check out our latest analysis for National Bank of Umm Al-Qaiwain (PSC)

What Does The Lack Of Institutional Ownership Tell Us About National Bank of Umm Al-Qaiwain (PSC)?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of National Bank of Umm Al-Qaiwain (PSC), for yourself, below.

Hedge funds don't have many shares in National Bank of Umm Al-Qaiwain (PSC). Our data shows that Government of Umm Al Quwain is the largest shareholder with 30% of shares outstanding. In comparison, the second and third largest shareholders hold about 13% and 10% of the stock.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 53% 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of National Bank of Umm Al-Qaiwain (PSC)

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our information suggests that insiders maintain a significant holding in National Bank of Umm Al-Qaiwain (PSC). It is very interesting to see that insiders have a meaningful د.إ731m stake in this د.إ3.9b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 41% stake in National Bank of Umm Al-Qaiwain (PSC). While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 10%, of the shares on issue. 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. Take risks for example - National Bank of Umm Al-Qaiwain (PSC) has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.

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

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.