Great week for ESG Emirates Stallions Group PJSC (ADX:ESG) institutional investors after losing 25% over the previous year

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
• 85% of the company is held by a single shareholder (International Holdings Group LLC, Real Estate Division)
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

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Every investor in ESG Emirates Stallions Group PJSC (ADX:ESG) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 85% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk).

Institutional investors would probably welcome last week's 9.2% increase in the share price after a year of 25% losses as a sign that returns may to begin trending higher.

In the chart below, we zoom in on the different ownership groups of ESG Emirates Stallions Group PJSC.

See 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.

As you can see, institutional investors have a fair amount of stake in ESG Emirates Stallions Group PJSC. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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.

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. 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. This implies that they have majority interest control of the future of the company.

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

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We note our data does not show any board members holding shares, personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public-- including retail investors -- own 15% stake in the company, and hence can't easily be ignored. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for ESG Emirates Stallions Group PJSC you should be aware of.

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.