In the wake of ESG Emirates Stallions Group PJSC's (ADX:ESG) latest د.إ178m market cap drop, institutional owners may be forced to take severe actions

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
• The largest shareholder of the company is International Holdings Group LLC, Real Estate Division with a 85% stake
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

A look at the shareholders of ESG Emirates Stallions Group PJSC (ADX:ESG) can tell us which group is most powerful. 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).

And so it follows that institutional investors was the group most impacted after the company's market cap fell to د.إ1.3b last week after a 12% drop in the share price. The recent loss, which adds to a one-year loss of 39% for stockholders, may not sit well with this group of investors. Also referred to as "smart money", institutions have a lot of sway over how a stock's price moves. As a result, if the decline continues, institutional investors may be pressured to sell ESG Emirates Stallions Group PJSC which might hurt individual investors.

Let's take a closer look to see what the different types of shareholders can tell us about 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?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

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 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see ESG Emirates Stallions Group PJSC's historic earnings and revenue below, but keep in mind there's always more to the story.

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. ESG Emirates Stallions Group PJSC is not owned by hedge funds. International Holdings Group LLC, Real Estate Division is currently the company's largest shareholder with 85% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With an ownership of 5.0%, the second largest shareholder is Matar Suhail Ali Al Al Dhaheri

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

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. 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.

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.

Shareholders would probably be interested to learn that insiders own shares in ESG Emirates Stallions Group PJSC. In their own names, insiders own د.إ63m worth of stock in the د.إ1.3b company. This shows at least some alignment. You can click here to see if those insiders have been buying or 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. Thus, only a relatively small part of the company is held by retail investors. Since they are only a small group of shareholders in the company, there's little they can do if their interests are not prioritized.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand ESG Emirates Stallions Group PJSC better, we need to consider many other factors. For example, we've discovered 2 warning signs for ESG Emirates Stallions Group PJSC (1 is potentially serious!) that you should be aware of before investing here.

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.