Individual investors own 32% of Abu Dhabi Commercial Bank PJSC (ADX:ADCB) shares but sovereign wealth funds control 60% of the company

Key Insights

• The considerable ownership by sovereign wealth funds in Abu Dhabi Commercial Bank PJSC indicates that they collectively have a greater say in management and business strategy
• 60% of the company is held by a single shareholder (Mubadala Investment Company PJSC)
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

If you want to know who really controls Abu Dhabi Commercial Bank PJSC (ADX:ADCB), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are sovereign wealth funds with 60% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, individual investors make up 32% of the company’s shareholders.

Let's delve deeper into each type of owner of Abu Dhabi Commercial Bank PJSC, beginning with the chart below.

Check out our latest analysis for Abu Dhabi Commercial Bank PJSC

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

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Abu Dhabi Commercial Bank PJSC 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Abu Dhabi Commercial Bank PJSC's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Abu Dhabi Commercial Bank PJSC. Looking at our data, we can see that the largest shareholder is Mubadala Investment Company PJSC with 60% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. The Vanguard Group, Inc. is the second largest shareholder owning 1.6% of common stock, and BlackRock, Inc. holds about 1.5% of the company stock.

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 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. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that Abu Dhabi Commercial Bank PJSC insiders own under 1% of the company. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own د.إ110m of stock. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 32% 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Abu Dhabi Commercial Bank PJSC better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Abu Dhabi Commercial Bank PJSC you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.