Do Institutions Own Islamic Arab Insurance Co. (Salama) PJSC (DFM:SALAMA) Shares?

If you want to know who really controls Islamic Arab Insurance Co. (Salama) PJSC (DFM:SALAMA), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of 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.

Islamic Arab Insurance (Salama) PJSC is not a large company by global standards. It has a market capitalization of د.إ1.0b, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Islamic Arab Insurance (Salama) PJSC.

View our latest analysis for Islamic Arab Insurance (Salama) PJSC

What Does The Institutional Ownership Tell Us About Islamic Arab Insurance (Salama) PJSC?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Islamic Arab Insurance (Salama) PJSC 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 Islamic Arab Insurance (Salama) PJSC, (below). Of course, keep in mind that there are other factors to consider, too.

Islamic Arab Insurance (Salama) PJSC is not owned by hedge funds. ADCM Ltd is currently the company's largest shareholder with 14% of shares outstanding. With 13% and 13% of the shares outstanding respectively, Mohamed Al Qassimi and Ajman Bank PJSC, Asset Management Arm are the second and third largest shareholders.

A deeper look at our ownership data shows that the top 5 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Islamic Arab Insurance (Salama) PJSC

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 Islamic Arab Insurance Co. (Salama) PJSC. It has a market capitalization of just د.إ1.0b, and insiders have د.إ138m worth of shares in their own names. 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, mostly retail investors, hold a substantial 60% stake in Islamic Arab Insurance (Salama) PJSC, suggesting it is a fairly popular stock. With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.

Private Equity Ownership

Private equity firms hold a 14% stake in Islamic Arab Insurance (Salama) PJSC. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Islamic Arab Insurance (Salama) PJSC better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Islamic Arab Insurance (Salama) PJSC you should know about.

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. 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.
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