Gulf Navigation Holding PJSC's (DFM:GULFNAV) market cap touched د.إ7.8b last week, benefiting both individual investors who own 58% as well as institutions

Key Insights

• Significant control over Gulf Navigation Holding PJSC by individual investors implies that the general public has more power to influence management and governance-related decisions
• A total of 11 investors have a majority stake in the company with 42% ownership
• Institutions own 36% of Gulf Navigation Holding PJSC

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Every investor in Gulf Navigation Holding PJSC (DFM:GULFNAV) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 58% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While individual investors were the group that reaped the most benefits after last week’s 3.0% price gain, institutions also received a 36% cut.

In the chart below, we zoom in on the different ownership groups of Gulf Navigation Holding PJSC.

View our latest analysis for Gulf Navigation Holding PJSC

What Does The Institutional Ownership Tell Us About Gulf Navigation Holding PJSC?

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.

Gulf Navigation Holding PJSC already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Gulf Navigation Holding PJSC, (below). Of course, keep in mind that there are other factors to consider, too.

Gulf Navigation Holding PJSC is not owned by hedge funds. The company's largest shareholder is Rasmala Investment Bank Limited, with ownership of 25%. CMC Markets Plc is the second largest shareholder owning 7.5% of common stock, and Abdullah Adel Abdulhamid Al Hosani holds about 5.4% of the company stock.

Our studies suggest that the top 11 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. 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 Gulf Navigation Holding PJSC

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

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We can report that insiders do own shares in Gulf Navigation Holding PJSC. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around د.إ424m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public -- including retail investors -- own 58% of Gulf Navigation Holding PJSC. With this amount 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 vote on acquisitions or mergers that may not improve profitability.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Gulf Navigation Holding PJSC .

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.