Dubai National Insurance & Reinsurance Co. (P.S.C.) (DFM:DNIR) surges 10.0%; individual investors who own 28% shares profited along with institutions

A look at the shareholders of Dubai National Insurance & Reinsurance Co. (P.S.C.) (DFM:DNIR) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 28% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While individual investors were the group that benefitted the most from last week’s د.إ58m market cap gain, institutions too had a 28% share in those profits.

In the chart below, we zoom in on the different ownership groups of Dubai National Insurance & Reinsurance (P.S.C.).

See our latest analysis for Dubai National Insurance & Reinsurance (P.S.C.)

What Does The Institutional Ownership Tell Us About Dubai National Insurance & Reinsurance (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.

We can see that Dubai National Insurance & Reinsurance (P.S.C.) does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Dubai National Insurance & Reinsurance (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 Dubai National Insurance & Reinsurance (P.S.C.). The company's largest shareholder is Al Habtoor Investment, with ownership of 28%. Khalaf Al Habtoor is the second largest shareholder owning 26% of common stock, and Al Habtoor Group LLC holds about 10% of the company stock.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 54% stake.

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. 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 National Insurance & Reinsurance (P.S.C.)

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 Dubai National Insurance & Reinsurance Co. (P.S.C.). Insiders have a د.إ165m stake in this د.إ635m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 28% stake in Dubai National Insurance & Reinsurance (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.

Private Company Ownership

Our data indicates that Private Companies hold 17%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Dubai National Insurance & Reinsurance (P.S.C.) better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Dubai National Insurance & Reinsurance (P.S.C.) (at least 2 which are concerning) , and understanding them should be part of your investment process.

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.