Abu Dhabi Commercial Bank PJSC's (ADX:ADCB) top owners are sovereign wealth funds with 60% stake, while 31% is held by individual investors

Key Insights

• Significant control over Abu Dhabi Commercial Bank PJSC by sovereign wealth funds implies that the general public has more power to influence management and governance-related decisions
• 60% of the company is held by a single shareholder (Mubadala Investment Company PJSC)
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of Abu Dhabi Commercial Bank PJSC (ADX:ADCB) can tell us which group is most powerful. The group holding the most number of shares in the company, around 60% to be precise, is sovereign wealth funds. Put another way, the group faces the maximum upside potential (or downside risk).

Individual investors, on the other hand, account for 31% of the company's stockholders.

Let's take a closer look to see what the different types of shareholders can tell us about Abu Dhabi Commercial Bank PJSC.

Check out our latest analysis for Abu Dhabi Commercial Bank PJSC

What Does The Institutional Ownership Tell Us About Abu Dhabi Commercial Bank PJSC?

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.

We can see that Abu Dhabi Commercial Bank PJSC does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Abu Dhabi Commercial Bank PJSC's historic earnings and revenue below, but keep in mind there's always more to the story.

Abu Dhabi Commercial Bank PJSC is not owned by hedge funds. Our data shows that Mubadala Investment Company PJSC is the largest shareholder with 60% of shares outstanding. This implies that they have majority interest control of the future of the company. With 1.7% and 1.5% of the shares outstanding respectively, The Vanguard Group, Inc. and BlackRock, Inc. are the second and third largest shareholders.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Abu Dhabi Commercial Bank PJSC

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data suggests that insiders own under 1% of Abu Dhabi Commercial Bank PJSC in their own names. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own د.إ104m worth of shares. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 31% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

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 Abu Dhabi Commercial Bank PJSC .

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.