How Much Of Al Ramz Corporation Investment and Development P.J.S.C. (DFM:ALRAMZ) Do Insiders Own?

The big shareholder groups in Al Ramz Corporation Investment and Development P.J.S.C. (DFM:ALRAMZ) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

With a market capitalization of د.إ440m, Al Ramz Corporation Investment and Development P.J.S.C is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about Al Ramz Corporation Investment and Development P.J.S.C.

View our latest analysis for Al Ramz Corporation Investment and Development P.J.S.C

What Does The Institutional Ownership Tell Us About Al Ramz Corporation Investment and Development P.J.S.C?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Al Ramz Corporation Investment and Development P.J.S.C. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Al Ramz Corporation Investment and Development P.J.S.C, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Al Ramz Corporation Investment and Development P.J.S.C. Sheikh Bin Zayed Bin Sultan Al Nahyan is currently the largest shareholder, with 18% of shares outstanding. Emirates Investment Bank P.J.S.C, Asset Management Arm is the second largest shareholder owning 15% of common stock, and Invest AD Asset Management PJSC holds about 13% of the company stock.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Al Ramz Corporation Investment and Development P.J.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.

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.

Our most recent data indicates that insiders own a reasonable proportion of Al Ramz Corporation Investment and Development P.J.S.C.. Insiders have a د.إ121m stake in this د.إ440m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public holds a 36% stake in Al Ramz Corporation Investment and Development P.J.S.C. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 8.8%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 3 warning signs for Al Ramz Corporation Investment and Development P.J.S.C (2 are concerning) that 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. 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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