Stock Analysis

Do Institutions Own Al Khaleej Takaful Insurance Company Q.P.S.C. (DSM:AKHI) Shares?

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DSM:AKHI
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If you want to know who really controls Al Khaleej Takaful Insurance Company Q.P.S.C. (DSM:AKHI), 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. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

With a market capitalization of ر.ق712m, Al Khaleej Takaful Insurance Company Q.P.S.C is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Al Khaleej Takaful Insurance Company Q.P.S.C.

View our latest analysis for Al Khaleej Takaful Insurance Company Q.P.S.C

ownership-breakdown
DSM:AKHI Ownership Breakdown March 17th 2021

What Does The Institutional Ownership Tell Us About Al Khaleej Takaful Insurance Company Q.P.S.C?

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.

Al Khaleej Takaful Insurance Company 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. 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 Al Khaleej Takaful Insurance Company Q.P.S.C, (below). Of course, keep in mind that there are other factors to consider, too.

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DSM:AKHI Earnings and Revenue Growth March 17th 2021

Hedge funds don't have many shares in Al Khaleej Takaful Insurance Company Q.P.S.C. Hasan Mohammed Al-Hammadi is currently the largest shareholder, with 12% of shares outstanding. For context, the second largest shareholder holds about 4.9% of the shares outstanding, followed by an ownership of 4.6% by the third-largest shareholder.

After doing some more digging, we found that the top 13 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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. 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 Al Khaleej Takaful Insurance Company Q.P.S.C

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

Our most recent data indicates that insiders own a reasonable proportion of Al Khaleej Takaful Insurance Company Q.P.S.C.. It has a market capitalization of just ر.ق712m, and insiders have ر.ق271m worth of shares in their own names. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 33% ownership, the general public have some degree of sway over Al Khaleej Takaful Insurance Company 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.

Private Company Ownership

It seems that Private Companies own 19%, of the Al Khaleej Takaful Insurance Company Q.P.S.C stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 1 warning sign for Al Khaleej Takaful Insurance Company Q.P.S.C that you should be aware of.

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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