What Type Of Shareholders Make Up National Bank of Umm Al-Qaiwain (PSC)'s (ADX:NBQ) Share Registry?

By
Simply Wall St
Published
January 14, 2022
ADX:NBQ
Source: Shutterstock

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. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

National Bank of Umm Al-Qaiwain (PSC) has a market capitalization of د.إ3.2b, so we would expect some institutional investors to have noticed the stock. Taking a look at our data on the ownership groups (below), it seems that institutions are not on the share registry. 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)

ownership-breakdown
ADX:NBQ Ownership Breakdown January 14th 2022

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 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. 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.

earnings-and-revenue-growth
ADX:NBQ Earnings and Revenue Growth January 14th 2022

Hedge funds don't have many shares in National Bank of Umm Al-Qaiwain (PSC). The company's largest shareholder is Government of Umm Al Quwain, with ownership of 30%. For context, the second largest shareholder holds about 12% of the shares outstanding, followed by an ownership of 10% by the third-largest shareholder.

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.

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. 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.

It seems insiders own a significant proportion of National Bank of Umm Al-Qaiwain (PSC). Insiders have a د.إ376m stake in this د.إ3.2b business. 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.

General Public Ownership

With a 38% ownership, the general public, mostly comprising of individual investors, have some degree of sway over National Bank of Umm Al-Qaiwain (PSC). While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 20%, of the National Bank of Umm Al-Qaiwain (PSC) 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.

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 National Bank of Umm Al-Qaiwain (PSC) (1 is potentially serious) that you should be aware of.

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.

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