Stock Analysis
- United Arab Emirates
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- Banks
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- ADX:RAKBANK
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
- Significant control over National Bank of Ras Al-Khaimah (P.S.C.) by state or government implies that the general public has more power to influence management and governance-related decisions
- A total of 2 investors have a majority stake in the company with 56% ownership
- Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
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. And the group that holds the biggest piece of the pie are state or government with 49% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And individual investors on the other hand have a 44% ownership in the company.
In the chart below, we zoom in on the different ownership groups of National Bank of Ras Al-Khaimah (P.S.C.).
Check out 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.)?
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. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. National Bank of Ras Al-Khaimah (P.S.C.) might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
National Bank of Ras Al-Khaimah (P.S.C.) is not owned by hedge funds. The company's largest shareholder is Ras Al Khaimah (Emirate of), with ownership of 49%. Meanwhile, the second and third largest shareholders, hold 6.9% and 0.03%, of the shares outstanding, respectively.
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.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of National Bank of Ras Al-Khaimah (P.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.
We can report that insiders do own shares in The National Bank of Ras Al-Khaimah (P.S.C.). The insiders have a meaningful stake worth د.إ798m. Most would see this as a real positive. 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, who are usually individual investors, hold a 44% stake in National Bank of Ras Al-Khaimah (P.S.C.). While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand National Bank of Ras Al-Khaimah (P.S.C.) better, we need to consider many other factors. For example, we've discovered 2 warning signs for National Bank of Ras Al-Khaimah (P.S.C.) (1 makes us a bit uncomfortable!) that you should be aware of before investing here.
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.
Valuation is complex, but we're here to simplify it.
Discover if National Bank of Ras Al-Khaimah (P.S.C.) might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.
About ADX:RAKBANK
National Bank of Ras Al-Khaimah (P.S.C.)
Provides retail, Islamic, and commercial banking products and services to individuals and businesses in the United Arab Emirates.