Abu Dhabi Islamic Bank PJSC's (ADX:ADIB) top owners are retail investors with 42% stake, while 39% is held by private equity firms

Key Insights

• Significant control over Abu Dhabi Islamic Bank PJSC by retail investors implies that the general public has more power to influence management and governance-related decisions
• The top 4 shareholders own 51% of the company
• Institutions own 17% of Abu Dhabi Islamic Bank PJSC

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A look at the shareholders of Abu Dhabi Islamic Bank PJSC (ADX:ADIB) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 42% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Private equity firms, on the other hand, account for 39% 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 Islamic Bank PJSC.

View our latest analysis for Abu Dhabi Islamic Bank PJSC

What Does The Institutional Ownership Tell Us About Abu Dhabi Islamic 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 Islamic 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. 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 Islamic Bank PJSC's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Abu Dhabi Islamic Bank PJSC. Our data shows that Emirates International Investment Company LLC is the largest shareholder with 39% of shares outstanding. Emirates NBD Bank PJSC is the second largest shareholder owning 6.8% of common stock, and Capital Research and Management Company holds about 2.8% of the company stock.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 Islamic 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.

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 most recent data indicates that insiders own some shares in Abu Dhabi Islamic Bank PJSC. The insiders have a meaningful stake worth د.إ1.4b. we sometimes take an interest in whether they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 42% stake in Abu Dhabi Islamic Bank PJSC. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

Private equity firms hold a 39% stake in Abu Dhabi Islamic Bank PJSC. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

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.

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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.