While private companies own 24% of Emirates Central Cooling Systems Corporation (DFM:EMPOWER), public companies are its largest shareholders with 56% ownership

Key Insights

• Significant control over Emirates Central Cooling Systems by public companies implies that the general public has more power to influence management and governance-related decisions
• Dubai Electricity and Water Authority (PJSC) owns 56% of the company
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

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Every investor in Emirates Central Cooling Systems Corporation (DFM:EMPOWER) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 56% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Private companies, on the other hand, account for 24% of the company's stockholders.

In the chart below, we zoom in on the different ownership groups of Emirates Central Cooling Systems.

Check out our latest analysis for Emirates Central Cooling Systems

What Does The Institutional Ownership Tell Us About Emirates Central Cooling Systems?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Emirates Central Cooling Systems. 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 Emirates Central Cooling Systems, (below). Of course, keep in mind that there are other factors to consider, too.

Emirates Central Cooling Systems is not owned by hedge funds. Dubai Electricity and Water Authority (PJSC) is currently the largest shareholder, with 56% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Meanwhile, the second and third largest shareholders, hold 24% and 2.6%, of the shares outstanding, respectively.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Emirates Central Cooling Systems

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 note our data does not show any board members 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 13% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Emirates Central Cooling Systems. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 24%, of the Emirates Central Cooling Systems stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

Public companies currently own 56% of Emirates Central Cooling Systems stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Emirates Central Cooling Systems better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Emirates Central Cooling Systems .

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.