Institutions along with retail investors who hold considerable shares inDubai National Insurance & Reinsurance Co. (P.S.C.) (DFM:DNIR) come under pressure; lose 10.0% of holdings value

Key Insights

• The considerable ownership by retail investors in Dubai National Insurance & Reinsurance (P.S.C.) indicates that they collectively have a greater say in management and business strategy
• The top 2 shareholders own 54% of the company
• Insiders own 26% of Dubai National Insurance & Reinsurance (P.S.C.)

To get a sense of who is truly in control of Dubai National Insurance & Reinsurance Co. (P.S.C.) (DFM:DNIR), it is important to understand the ownership structure of the business. With 28% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 10.0% decrease in the stock price last week, retail investors suffered the most losses, but institutions who own 28% stock also took a hit.

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

Check out 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. 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.

We note that hedge funds don't have a meaningful investment in Dubai National Insurance & Reinsurance (P.S.C.). Looking at our data, we can see that the largest shareholder is Al Habtoor Investment with 28% of shares outstanding. For context, the second largest shareholder holds about 26% of the shares outstanding, followed by an ownership of 10% by the third-largest shareholder.

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 company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 Co. (P.S.C.). It has a market capitalization of just د.إ499m, and insiders have د.إ130m 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 usually individual investors, hold a 28% stake in Dubai National Insurance & Reinsurance (P.S.C.). This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 17%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

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. Case in point: We've spotted 2 warning signs for Dubai National Insurance & Reinsurance (P.S.C.) you should be aware of.

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.