Al Ain Ahlia Insurance Company P.S.C.'s (ADX:ALAIN) market cap up د.إ48m last week, benefiting both retail investors who own 57% as well as insiders

Key Insights

• The considerable ownership by retail investors in Al Ain Ahlia Insurance Company P.S.C indicates that they collectively have a greater say in management and business strategy
• 43% of the business is held by the top 3 shareholders
• 23% of Al Ain Ahlia Insurance Company P.S.C is held by insiders

If you want to know who really controls Al Ain Ahlia Insurance Company P.S.C. (ADX:ALAIN), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 57% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While retail investors were the group that reaped the most benefits after last week’s 11% price gain, insiders also received a 23% cut.

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

See our latest analysis for Al Ain Ahlia Insurance Company P.S.C

What Does The Lack Of Institutional Ownership Tell Us About Al Ain Ahlia Insurance Company P.S.C?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

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. Al Ain Ahlia Insurance Company P.S.C might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Al Ain Ahlia Insurance Company P.S.C is not owned by hedge funds. Our data shows that Mubadala Investment Company PJSC is the largest shareholder with 20% of shares outstanding. Mohamed Jouan Al Badi Aldhaheri is the second largest shareholder owning 16% of common stock, and Khaled Mohamed R. Albadi Aldhaheri holds about 7.0% of the company stock. Khaled Mohamed R. Albadi Aldhaheri, who is the third-largest shareholder, also happens to hold the title of Vice Chairman.

Our studies suggest that the top 3 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 Ain Ahlia 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.

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 information suggests that insiders maintain a significant holding in Al Ain Ahlia Insurance Company P.S.C.. Insiders have a د.إ110m stake in this د.إ480m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 57% stake in Al Ain Ahlia Insurance Company P.S.C, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Al Ain Ahlia Insurance Company P.S.C better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Al Ain Ahlia Insurance Company P.S.C , and understanding them should be part of your investment process.

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. 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.