The large groups of shareholders of Barwa Real Estate Company QPSC (DSM:BRES) have power over the company. Big companies usually have institutions as shareholders, and we usually see insiders owning shares in small companies. Companies that have been privatized tend to have low insider ownership.
Barwa Real Estate Company QPSC is quite a large company. It has a market capitalization of ر.ق13b. Normally, institutions own a significant share of a business of this size. Looking at our ownership group data (below), it appears that institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Barwa Real Estate Company QPSC
Check out our latest analysis for Barwa Real Estate Company QPSC
What does institutional ownership tell us about Barwa Real Estate Company QPSC?
Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
As you can see, institutional investors own a large share of Barwa Real Estate Company QPSC. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking the past earnings trajectory of Barwa Real Estate Company QPSC, (below). Of course, keep in mind that there are other factors to consider as well.
Investors should note that institutions actually own more than half of the company, so they can collectively wield significant power. Hedge funds do not have many shares in Barwa Real Estate Company QPSC Qatari Diar is currently the largest shareholder, with 45% of shares outstanding. With 2.2% and 1.4% of the shares outstanding, respectively, The Vanguard Group, Inc. and BlackRock, Inc. are the second and third largest shareholders.
A closer look at our ownership figures suggests that the top 16 shareholders hold a combined ownership of 50%, implying that no single shareholder has a majority.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. As far as we can tell, there’s no analyst coverage of the company, so it’s probably flying under the radar.
Insider ownership of Barwa QPSC real estate company
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.
Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
Our data does not allow us to confirm that the members of the board of directors personally hold shares. It is unusual not to have at least some personal holdings of board members, so our data could be in error. A good next step would be to check how much the CEO gets paid.
General public property
With a 49% stake, the general public, consisting mostly of individual investors, has some influence over Barwa Real Estate Company QPSC. Although this size of ownership may not be enough to sway a political decision in their favour, they can still make a collective impact on company policies.
While it is worth considering the different groups that own a business, there are other, even more important factors. Be aware that Barwa Real Estate Company QPSC displays 5 warning signs in our investment analysis and 2 of them don’t suit us too much…
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.