Following a 16% decline over last year, recent gains may please ESG Emirates Stallions Group PJSC (ADX:ESG) institutional owners

Key Insights

• Given the large stake in the stock by institutions, ESG Emirates Stallions Group PJSC's stock price might be vulnerable to their trading decisions
• International Holdings Group LLC, Real Estate Division owns 85% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in ESG Emirates Stallions Group PJSC (ADX:ESG) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 85% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Last week's د.إ198m market cap gain would probably be appreciated by institutional investors, especially after a year of 16% losses.

Let's delve deeper into each type of owner of ESG Emirates Stallions Group PJSC, beginning with the chart below.

Check out our latest analysis for ESG Emirates Stallions Group PJSC

What Does The Institutional Ownership Tell Us About ESG Emirates Stallions Group PJSC?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that ESG Emirates Stallions Group PJSC does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at ESG Emirates Stallions Group PJSC's earnings history below. Of course, the future is what really matters.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. ESG Emirates Stallions Group PJSC is not owned by hedge funds. Our data shows that International Holdings Group LLC, Real Estate Division is the largest shareholder with 85% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With an ownership of 5.0%, the second largest shareholder is Matar Suhail Ali Al Al Dhaheri

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of ESG Emirates Stallions Group PJSC

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 most recent data indicates that insiders own some shares in ESG Emirates Stallions Group PJSC. In their own names, insiders own د.إ82m worth of stock in the د.إ1.6b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 10.0% stake, and are a relatively minor group of shareholders in ESG Emirates Stallions Group PJSC. We would usually expect a higher level of ownership by the general public. With such a small collective position, it may be difficult for small holders to influence 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. To that end, you should learn about the 2 warning signs we've spotted with ESG Emirates Stallions Group PJSC (including 1 which makes us a bit uncomfortable) .

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.

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.