Emaar Development PJSC (DFM:EMAARDEV) stock most popular amongst public companies who own 79%, while individual investors hold 15%

Key Insights

• Emaar Development PJSC's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 79% of the company is held by a single shareholder (Emaar Properties PJSC)
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

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Every investor in Emaar Development PJSC (DFM:EMAARDEV) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 79% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And individual investors on the other hand have a 15% ownership in the company.

Let's take a closer look to see what the different types of shareholders can tell us about Emaar Development PJSC.

View our latest analysis for Emaar Development PJSC

What Does The Institutional Ownership Tell Us About Emaar Development 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.

As you can see, institutional investors have a fair amount of stake in Emaar Development PJSC. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Emaar Development PJSC's earnings history below. Of course, the future is what really matters.

Emaar Development PJSC is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Emaar Properties PJSC with 79% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 1.0% and 0.8% of the shares outstanding respectively, The Vanguard Group, Inc. and Norges Bank Investment Management are the second and third largest shareholders.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Emaar Development PJSC

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.

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 data cannot confirm that board members are holding shares personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

With a 15% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Emaar Development PJSC. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 79% of Emaar Development PJSC stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Emaar Development PJSC better, we need to consider many other factors. For example, we've discovered 1 warning sign for Emaar Development PJSC that you should be aware of before investing here.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.