In This Article:
Key Insights
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Insiders appear to have a vested interest in OCI's growth, as seen by their sizeable ownership
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53% of the company is held by a single shareholder (Nassef Onssy Sawiris)
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Institutions own 28% of OCI
To get a sense of who is truly in control of OCI N.V. (AMS:OCI), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 53% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
So, insiders of OCI have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.
In the chart below, we zoom in on the different ownership groups of OCI.
View our latest analysis for OCI
What Does The Institutional Ownership Tell Us About OCI?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
OCI already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 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. The second and third largest shareholders are Orascom Tmt Investments S.à R.L. and UBS Asset Management AG, with an equal amount of shares to their name at 3.5%.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of OCI
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.