Stock Analysis

Do Institutions Own Dubai Islamic Insurance & Reinsurance Co. (Aman) (P.J.S.C) (DFM:AMAN) Shares?

DFM:AMAN
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If you want to know who really controls Dubai Islamic Insurance & Reinsurance Co. (Aman) (P.J.S.C) (DFM:AMAN), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. 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.إ96m, Dubai Islamic Insurance & Reinsurance (Aman) (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's seems that institutions don't own shares in the company. We can zoom in on the different ownership groups, to learn more about Dubai Islamic Insurance & Reinsurance (Aman) (P.J.S.C).

View our latest analysis for Dubai Islamic Insurance & Reinsurance (Aman) (P.J.S.C)

DFM:AMAN Ownership Summary June 17th 2020
DFM:AMAN Ownership Summary June 17th 2020

What Does The Lack Of Institutional Ownership Tell Us About Dubai Islamic Insurance & Reinsurance (Aman) (P.J.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 could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. Alternatively, there might be something about the company that has kept institutional investors away. Dubai Islamic Insurance & Reinsurance (Aman) (P.J.S.C) might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

DFM:AMAN Income Statement June 17th 2020
DFM:AMAN Income Statement June 17th 2020

Hedge funds don't have many shares in Dubai Islamic Insurance & Reinsurance (Aman) (P.J.S.C). The company's largest shareholder is Mohammed Bin Bin Yousef Al Muhairi, with ownership of 13%,

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 Dubai Islamic Insurance & Reinsurance (Aman) (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.

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 most recent data indicates that insiders own a reasonable proportion of Dubai Islamic Insurance & Reinsurance Co. (Aman) (P.J.S.C). It has a market capitalization of just د.إ96m, and insiders have د.إ13m worth of shares in their own names. 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 mostly retail investors, collectively hold 87% of Dubai Islamic Insurance & Reinsurance (Aman) (P.J.S.C) shares. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Dubai Islamic Insurance & Reinsurance (Aman) (P.J.S.C) , and understanding them should be part of your investment process.

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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