Stock Analysis

Individual investors own 43% of Qatar National Bank (Q.P.S.C.) (DSM:QNBK) shares but sovereign wealth funds control 50% of the company

DSM:QNBK
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Key Insights

  • The considerable ownership by sovereign wealth funds in Qatar National Bank (Q.P.S.C.) indicates that they collectively have a greater say in management and business strategy
  • Qatar Investment Authority owns 50% of the company
  • Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

A look at the shareholders of Qatar National Bank (Q.P.S.C.) (DSM:QNBK) can tell us which group is most powerful. We can see that sovereign wealth funds own the lion's share in the company with 50% 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 43% ownership in the company.

Let's delve deeper into each type of owner of Qatar National Bank (Q.P.S.C.), beginning with the chart below.

View our latest analysis for Qatar National Bank (Q.P.S.C.)

ownership-breakdown
DSM:QNBK Ownership Breakdown October 19th 2023

What Does The Institutional Ownership Tell Us About Qatar National Bank (Q.P.S.C.)?

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.

Qatar National Bank (Q.P.S.C.) already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Qatar National Bank (Q.P.S.C.)'s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
DSM:QNBK Earnings and Revenue Growth October 19th 2023

Hedge funds don't have many shares in Qatar National Bank (Q.P.S.C.). Qatar Investment Authority is currently the largest shareholder, with 50% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 2.0% and 1.5% of the shares outstanding respectively, The Vanguard Group, Inc. and BlackRock, Inc. 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Qatar National Bank (Q.P.S.C.)

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We note our data does not show any board members holding shares, personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public, who are usually individual investors, hold a 43% stake in Qatar National Bank (Q.P.S.C.). While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Qatar National Bank (Q.P.S.C.) , and understanding them should be part of your investment process.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Qatar National Bank (Q.P.S.C.) is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.