QLM Life & Medical Insurance Company Q.P.S.C.'s (DSM:QLMI) stock price dropped 13% last week; individual investors would not be happy

Key Insights

• The considerable ownership by individual investors in QLM Life & Medical Insurance Company Q.P.S.C indicates that they collectively have a greater say in management and business strategy
• A total of 6 investors have a majority stake in the company with 50% ownership
• Institutional ownership in QLM Life & Medical Insurance Company Q.P.S.C is 12%

A look at the shareholders of QLM Life & Medical Insurance Company Q.P.S.C. (DSM:QLMI) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 47% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 13% decline in share price, individual investors suffered the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about QLM Life & Medical Insurance Company Q.P.S.C.

View our latest analysis for QLM Life & Medical Insurance Company Q.P.S.C

What Does The Institutional Ownership Tell Us About QLM Life & Medical Insurance Company 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.

We can see that QLM Life & Medical 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. 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 QLM Life & Medical Insurance Company Q.P.S.C's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in QLM Life & Medical Insurance Company Q.P.S.C. Qatar Insurance Company Q.S.P.C. is currently the company's largest shareholder with 25% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.6% and 5.0% of the stock.

We did some more digging and found that 6 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of QLM Life & Medical Insurance Company Q.P.S.C

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Shareholders would probably be interested to learn that insiders own shares in QLM Life & Medical Insurance Company Q.P.S.C.. As individuals, the insiders collectively own ر.ق49m worth of the ر.ق978m company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over QLM Life & Medical Insurance Company Q.P.S.C. 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.

Private Company Ownership

We can see that Private Companies own 5.0%, of the shares on issue. 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.

Public Company Ownership

Public companies currently own 25% of QLM Life & Medical Insurance Company Q.P.S.C stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand QLM Life & Medical Insurance Company Q.P.S.C better, we need to consider many other factors. Take risks for example - QLM Life & Medical Insurance Company Q.P.S.C has 4 warning signs (and 2 which are potentially serious) we think you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.

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

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.