What Percentage Of Ras Al Khaimah Cement Company P.S.C. (ADX:RAKCC) Shares Do Insiders Own?

A look at the shareholders of Ras Al Khaimah Cement Company P.S.C. (ADX:RAKCC) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

With a market capitalization of د.إ372m, Ras Al Khaimah Cement Company P.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 seems that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Ras Al Khaimah Cement Company P.S.C.

Check out our latest analysis for Ras Al Khaimah Cement Company P.S.C

What Does The Institutional Ownership Tell Us About Ras Al Khaimah Cement Company 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.

As you can see, institutional investors have a fair amount of stake in Ras Al Khaimah Cement Company P.S.C. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Ras Al Khaimah Cement Company P.S.C, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Ras Al Khaimah Cement Company P.S.C. The company's largest shareholder is Mohammed Abdulaziz Rabie Al Muhairi, with ownership of 14%. The second and third largest shareholders are Siham Al Taibi Najjar and Invest Bank P.S.C, Asset Management Arm, with an equal amount of shares to their name at 10.0%.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Ras Al Khaimah Cement Company 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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 Ras Al Khaimah Cement Company P.S.C.. It has a market capitalization of just د.إ372m, and insiders have د.إ151m worth of shares in their own names. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, with a 41% 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.

Public Company Ownership

We can see that public companies hold 8.1% of the Ras Al Khaimah Cement Company P.S.C shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Ras Al Khaimah Cement Company P.S.C has 1 warning sign we think you should be aware of.

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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