Here's What Dubai National Insurance & Reinsurance (P.S.C.)'s (DFM:DNIR) Shareholder Ownership Structure Looks Like

The big shareholder groups in Dubai National Insurance & Reinsurance (P.S.C.) (DFM:DNIR) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

Dubai National Insurance & Reinsurance (P.S.C.) is not a large company by global standards. It has a market capitalization of د.إ571m, which means it wouldn't have the attention of many institutional investors. In the chart below, we can see that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about 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.)?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Dubai National Insurance & Reinsurance (P.S.C.). This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Dubai National Insurance & Reinsurance (P.S.C.), (below). Of course, keep in mind that there are other factors to consider, too.

Dubai National Insurance & Reinsurance (P.S.C.) is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Al Habtoor Investment with 28% of shares outstanding. Khalaf Al Habtoor is the second largest shareholder owning 26% of common stock, and Salem Abdulla Al Hosani holds about 8.2% of the company stock.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 maintain a significant holding in Dubai National Insurance & Reinsurance (P.S.C.). Insiders own د.إ195m worth of shares in the د.إ571m company. 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, with a 30% stake in the company, will not 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.

Private Company Ownership

It seems that Private Companies own 7.1%, of the Dubai National Insurance & Reinsurance (P.S.C.) stock. 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:

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. Take risks for example - Dubai National Insurance & Reinsurance (P.S.C.) has 1 warning sign we think you should be aware of.

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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