Stock Analysis

What Type Of Shareholders Own The Most Number of Al Khaleej Takaful Insurance Company Q.P.S.C. (DSM:AKHI) Shares?

DSM:AKHI
Source: Shutterstock

Every investor in Al Khaleej Takaful Insurance Company Q.P.S.C. (DSM:AKHI) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. 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.

Al Khaleej Takaful Insurance Company Q.P.S.C is not a large company by global standards. It has a market capitalization of ر.ق490m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about Al Khaleej Takaful Insurance Company Q.P.S.C.

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

ownership-breakdown
DSM:AKHI Ownership Breakdown December 14th 2020

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.

We can see that Al Khaleej Takaful Insurance Company Q.P.S.C does have institutional investors; and they hold a good portion of the company's stock. 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 Al Khaleej Takaful Insurance Company Q.P.S.C, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
DSM:AKHI Earnings and Revenue Growth December 14th 2020

Hedge funds don't have many shares in Al Khaleej Takaful Insurance Company Q.P.S.C. Our data shows that Al Mana Capital Holding Company is the largest shareholder with 4.9% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.6% and 4.3% of the stock.

On studying our ownership data, we found that 23 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Al Khaleej Takaful Insurance Company 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of Al Khaleej Takaful Insurance Company Q.P.S.C.. Insiders own ر.ق186m worth of shares in the ر.ق490m company. 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

The general public, with a 33% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 19%, of the company's shares. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Al Khaleej Takaful Insurance Company Q.P.S.C better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Al Khaleej Takaful Insurance Company Q.P.S.C .

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.

If you decide to trade Al Khaleej Takaful Insurance Company Q.P.S.C, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted


New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.