Stock Analysis

What Type Of Shareholders Own The Most Number of Qatar National Bank (Q.P.S.C.) (DSM:QNBK) Shares?

DSM:QNBK
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If you want to know who really controls Qatar National Bank (Q.P.S.C.) (DSM:QNBK), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.

Qatar National Bank (Q.P.S.C.) has a market capitalization of ر.ق156b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. In the chart below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Qatar National Bank (Q.P.S.C.).

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

ownership-breakdown
DSM:QNBK Ownership Breakdown March 4th 2021

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

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.

We can see that Qatar National Bank (Q.P.S.C.) does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Qatar National Bank (Q.P.S.C.)'s historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
DSM:QNBK Earnings and Revenue Growth March 4th 2021

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 company's 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 1.6% of common stock, and BlackRock, Inc. holds about 1.2% of the company stock.

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. 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.

Our data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public holds a 45% 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Qatar National Bank (Q.P.S.C.) better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Qatar National Bank (Q.P.S.C.) (including 1 which makes us a bit uncomfortable) .

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. 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.
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