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Home›Company stockholders›Private companies are among the top shareholders of Wataniya Insurance Company (TADAWUL:8300) and have been hit after prices fell 31% last week

Private companies are among the top shareholders of Wataniya Insurance Company (TADAWUL:8300) and have been hit after prices fell 31% last week

By Nestor E. Bautista
April 15, 2022
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To get an idea of ​​who actually controls Wataniya Insurance Company (TADAWUL:8300), it is important to understand the ownership structure of the company. And the group that holds the biggest slice of the pie are private companies with 53% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).

As the market capitalization fell to £448million last week, private companies would have suffered the highest losses than any other group of shareholders in the company.

Let’s take a closer look at what different types of shareholders can tell us about Wataniya Insurance.

Check out our latest analysis for Wataniya Insurance

SASE: 8300 Ownership Breakdown April 15, 2022

What does institutional ownership tell us about Wataniya Insurance?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

We see that Wataniya Insurance has institutional investors; and they own a good part of the shares of the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it is worth checking Wataniya Insurance’s income history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SASE: 8300 Earnings and Revenue Growth April 15, 2022

Hedge funds don’t have a lot of shares in Wataniya Insurance. Looking at our data, we can see that the major shareholder is SNIC Insurance BSC(C) with 28% of the outstanding shares. With respectively 20% and 10.0% of the outstanding shares, Private Wealth Investment Holding Company and MEAG MUNICH ERGO Asset Management GmbH are the second and third shareholders.

To make our study more interesting, we found that the top 3 shareholders hold a majority stake in the company, which means they are powerful enough to influence company decisions.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. 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 Wataniya Insurance

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

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 most recent data indicates that insiders own less than 1% of Wataniya Insurance Company. We note, however, that insiders may have an indirect interest through a private company or other corporate structure. Its market capitalization is just £448 million and the board holds just £392,000 worth of shares in its own name. Many tend to prefer to see a board with larger holdings. A good next step might be to take a look at this free summary of insider buying and selling.

General public property

The general public, usually individual investors, holds 37% of the capital of Wataniya Insurance. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.

Private Company Ownership

It appears that private companies own 53% of the shares of Wataniya Insurance. Private companies can be related parties. Sometimes insiders have an interest in a public company through an equity stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Like risks, for example. Every business has them, and we’ve spotted 2 warning signs for Wataniya Insurance (1 of which is a little unpleasant!) that you should know about.

Sure this may not be the best stock to buy. So take a look at this free 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 the financial statements are dated. This may not be consistent with the annual report figures for the full year.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

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.

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