Insiders with their considerable ownership were the key benefactors as Al Buhaira National Insurance Company P.S.C. (ADX:ABNIC) touches د.إ748m market cap

Key Insights

• Significant insider control over Al Buhaira National Insurance Company P.S.C implies vested interests in company growth
• The top 4 shareholders own 55% of the company
• Institutions own 10.0% of Al Buhaira National Insurance Company P.S.C

We've discovered 1 warning sign about Al Buhaira National Insurance Company P.S.C. View them for free.

To get a sense of who is truly in control of Al Buhaira National Insurance Company P.S.C. (ADX:ABNIC), it is important to understand the ownership structure of the business. 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 were the biggest beneficiaries of last week’s 11% gain.

Let's take a closer look to see what the different types of shareholders can tell us about 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. 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 Al Buhaira National Insurance Company P.S.C's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Al Buhaira National Insurance Company P.S.C. Our data shows that Salem Salem Al Hosani is the largest shareholder with 19% 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 13% 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 55% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

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. 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, who are usually individual investors, hold a 26% stake in Al Buhaira National Insurance Company P.S.C. 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

It appears to us that public companies own 9.8% of Al Buhaira National Insurance Company P.S.C. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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 1 warning sign 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. So take a peek at this free 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.