Yahoo Finance OCI N.V.'s (AMS:OCI) largest shareholder, Top Key Executive Nassef Onssy Sawiris sees holdings value fall by 3.8% following recent drop
Key Insights
Insiders appear to have a vested interest in OCI's growth, as seen by their sizeable ownership
Nassef Onssy Sawiris owns 53% of the company
If you want to know who really controls OCI N.V. (AMS:OCI), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 53% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And following last week's 3.8% decline in share price, insiders suffered the most losses.
In the chart below, we zoom in on the different ownership groups of OCI.
See our latest analysis for OCI
What Does The Institutional Ownership Tell Us About OCI?
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.
As you can see, institutional investors have a fair amount of stake in OCI. 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. 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 OCI'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 OCI. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In OCI's case, its Top Key Executive, Nassef Onssy Sawiris, is the largest shareholder, holding 53% of shares outstanding. With 4.3% and 3.5% of the shares outstanding respectively, UBS Asset Management AG and Orascom Tmt Investments S.à R.L. are the second and third largest shareholders.
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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of OCI
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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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 that insiders own more than half the OCI N.V. stock. This gives them a lot of power. Insiders own €2.7b worth of shares in the €5.1b company. That's extraordinary! Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.
General Public Ownership
With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over OCI. 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.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with OCI .
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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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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.
