Al Buhaira National Insurance Company P.S.C.'s (ADX:ABNIC) market cap increased by د.إ93m, insiders receive a 51% cut

Key Insights

• Al Buhaira National Insurance Company P.S.C's significant insider ownership suggests inherent interests in company's expansion
• A total of 4 investors have a majority stake in the company with 52% ownership
• 10.0% of Al Buhaira National Insurance Company P.S.C is held by Institutions

Every investor in Al Buhaira National Insurance Company P.S.C. (ADX:ABNIC) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 51% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 15% gain.

Let's delve deeper into each type of owner of Al Buhaira National Insurance Company P.S.C, beginning with the chart below.

Check out our latest analysis for Al Buhaira National Insurance Company P.S.C

What Does The Institutional Ownership Tell Us About Al Buhaira National Insurance Company P.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 Buhaira National Insurance Company P.S.C. 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 Al Buhaira National Insurance Company P.S.C's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Al Buhaira National Insurance Company P.S.C. Looking at our data, we can see that the largest shareholder is Salem Abdulla Al Hosani with 16% of shares outstanding. Abdulla Bin Mohammed Al Thani is the second largest shareholder owning 13% of common stock, and Faisal Bin Khalid Al Qasimi holds about 12% of the company stock. Faisal Bin Khalid Al Qasimi, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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 Al Buhaira National Insurance Company P.S.C

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems that insiders own more than half the Al Buhaira National Insurance Company P.S.C. stock. This gives them a lot of power. That means they own د.إ369m worth of shares in the د.إ718m company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 29% 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.

Public Company Ownership

Public companies currently own 9.8% of Al Buhaira National Insurance Company P.S.C stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Al Buhaira National Insurance Company P.S.C better, we need to consider many other factors. For instance, we've identified 2 warning signs for Al Buhaira National Insurance Company P.S.C that you should be aware of.

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. 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.