Insiders the biggest winners as Al Buhaira National Insurance Company P.S.C.'s (ADX:ABNIC) market cap rises to د.إ748m

Key Insights

• Al Buhaira National Insurance Company P.S.C's significant insider ownership suggests inherent interests in company's expansion
• The top 4 shareholders own 55% of the company
• Institutions own 10.0% of Al Buhaira National Insurance Company P.S.C

Every investor in Al Buhaira National Insurance Company P.S.C. (ADX:ABNIC) should be aware of the most powerful shareholder groups. With 54% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit د.إ748m market cap following a 19% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Al Buhaira National Insurance Company P.S.C.

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?

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.

As you can see, institutional investors have a fair amount of stake in Al Buhaira National Insurance Company P.S.C. 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 Al Buhaira National Insurance Company P.S.C's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Al Buhaira National Insurance Company P.S.C. Ahmed Salem Salem Al Hosani is currently the company's largest shareholder with 19% of shares outstanding. For context, the second largest shareholder holds about 13% of the shares outstanding, followed by an ownership of 13% by the third-largest shareholder. 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 55% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

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. 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.

Our information suggests that insiders own more than half of Al Buhaira National Insurance Company P.S.C.. This gives them effective control of the company. So they have a د.إ405m stake in this د.إ748m business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 26% stake in the company, and hence can't easily be ignored. 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.

Public Company Ownership

Public companies currently own 9.8% of Al Buhaira National Insurance Company P.S.C stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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. Be aware that Al Buhaira National Insurance Company P.S.C is showing 3 warning signs in our investment analysis , and 2 of those are potentially serious...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.