Could The National Corporation for Tourism and Hotels (ADX:NCTH) Ownership Structure Tell Us Something Useful?

By
Simply Wall St
Published
February 02, 2021
ADX:NCTH
Source: Shutterstock

If you want to know who really controls National Corporation for Tourism and Hotels (ADX:NCTH), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

With a market capitalization of د.إ1.6b, National Corporation for Tourism and Hotels is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have not yet purchased shares. Let's delve deeper into each type of owner, to discover more about National Corporation for Tourism and Hotels.

View our latest analysis for National Corporation for Tourism and Hotels

ownership-breakdown
ADX:NCTH Ownership Breakdown February 3rd 2021

What Does The Lack Of Institutional Ownership Tell Us About National Corporation for Tourism and Hotels?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. 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 Corporation for Tourism and Hotels, for yourself, below.

earnings-and-revenue-growth
ADX:NCTH Earnings and Revenue Growth February 3rd 2021

Hedge funds don't have many shares in National Corporation for Tourism and Hotels. Our data shows that Sheikh bin Mubarak Al Nahyan is the largest shareholder with 40% of shares outstanding. With 14% and 7.8% of the shares outstanding respectively, Mohammed Abdulaziz Rabie Al Muhairi and Sultan Bin Souror Al Dhaheri are the second and third largest shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. 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 National Corporation for Tourism and Hotels

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.

It seems that insiders own more than half the National Corporation for Tourism and Hotels stock. This gives them a lot of power. That means they own د.إ968m worth of shares in the د.إ1.6b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public holds a 27% stake in National Corporation for Tourism and Hotels. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 12%, of the National Corporation for Tourism and Hotels stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand National Corporation for Tourism and Hotels better, we need to consider many other factors. For example, we've discovered 1 warning sign for National Corporation for Tourism and Hotels that you should be aware of before investing here.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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. 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.
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