National Bank of Umm Al-Qaiwain (PSC)'s (ADX:NBQ) market cap surged د.إ840m last week, retail investors who have a lot riding on the company were rewarded

Key Insights

• National Bank of Umm Al-Qaiwain (PSC)'s significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 3 investors have a majority stake in the company with 57% ownership
• Insider ownership in National Bank of Umm Al-Qaiwain (PSC) is 19%

If you want to know who really controls National Bank of Umm Al-Qaiwain (PSC) (ADX:NBQ), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are retail investors with 36% 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 20% gain.

In the chart below, we zoom in on the different ownership groups of National Bank of Umm Al-Qaiwain (PSC).

See 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)?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

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. National Bank of Umm Al-Qaiwain (PSC)'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.

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 34% of shares outstanding. Ahmed Salem Salem Al Hosani is the second largest shareholder owning 13% of common stock, and A W Rostamani Holdings Co. (LLC) holds about 10% of the company stock.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 most recent data indicates that insiders own a reasonable proportion of National Bank of Umm Al-Qaiwain (PSC). It is very interesting to see that insiders have a meaningful د.إ982m stake in this د.إ5.1b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 36% stake in National Bank of Umm Al-Qaiwain (PSC). 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.

Private Company Ownership

Our data indicates that Private Companies hold 10%, of the company's shares. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand National Bank of Umm Al-Qaiwain (PSC) better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with National Bank of Umm Al-Qaiwain (PSC) (at least 1 which doesn't sit too well with us) , and understanding them should be part of your investment process.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.