Stock Analysis

Qatar National Bank (Q.P.S.C.)'s (DSM:QNBK) market cap dropped ر.ق7.0b last week; Sovereign wealth funds bore the brunt

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Key Insights

  • Significant control over Qatar National Bank (Q.P.S.C.) by sovereign wealth funds implies that the general public has more power to influence management and governance-related decisions
  • Qatar Investment Authority owns 50% of the company
  • Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

Every investor in Qatar National Bank (Q.P.S.C.) (DSM:QNBK) should be aware of the most powerful shareholder groups. We can see that sovereign wealth funds own the lion's share in the company with 50% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, sovereign wealth funds as a group endured the highest losses last week after market cap fell by ر.ق7.0b.

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

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

DSM:QNBK Ownership Breakdown March 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.

As you can see, institutional investors have a fair amount of stake in Qatar National Bank (Q.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 Qatar National Bank (Q.P.S.C.), (below). Of course, keep in mind that there are other factors to consider, too.

DSM:QNBK Earnings and Revenue Growth March 19th 2023

We note that hedge funds don't have a meaningful investment 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. The Vanguard Group, Inc. is the second largest shareholder owning 1.9% of common stock, and BlackRock, Inc. holds about 1.5% of the company stock.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

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. 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.

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-- including retail investors -- own 43% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for Qatar National Bank (Q.P.S.C.) that you should be aware of.

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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