State or government account for 49% of The National Bank of Ras Al-Khaimah (P.S.C.)'s (ADX:RAKBANK) ownership, while individual investors account for 44%

Key Insights

• The considerable ownership by state or government in National Bank of Ras Al-Khaimah (P.S.C.) indicates that they collectively have a greater say in management and business strategy
• 56% of the business is held by the top 2 shareholders
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls The National Bank of Ras Al-Khaimah (P.S.C.) (ADX:RAKBANK), then you'll have to look at the makeup of its share registry. 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).

Individual investors, on the other hand, account for 44% of the company's stockholders.

Let's delve deeper into each type of owner of National Bank of Ras Al-Khaimah (P.S.C.), beginning with the chart below.

View 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.)?

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. 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 Ras Al-Khaimah (P.S.C.), for yourself, below.

We note that hedge funds don't have a meaningful investment in National Bank of Ras Al-Khaimah (P.S.C.). Ras Al Khaimah (Emirate of) is currently the largest shareholder, 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

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

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. 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 report that insiders do own shares in The National Bank of Ras Al-Khaimah (P.S.C.). This is a big company, so it is good to see this level of alignment. Insiders own د.إ722m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 44% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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 Ras Al-Khaimah (P.S.C.) has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

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