Retail investors are Abu Dhabi Islamic Bank PJSC's (ADX:ADIB) biggest owners and were hit after market cap dropped د.إ2.7b

Key Insights

• Abu Dhabi Islamic Bank PJSC's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 5 shareholders own 51% of the company
• Institutional ownership in Abu Dhabi Islamic Bank PJSC is 13%

If you want to know who really controls Abu Dhabi Islamic Bank PJSC (ADX:ADIB), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, retail investors as a group endured the highest losses last week after market cap fell by د.إ2.7b.

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

View our latest analysis for Abu Dhabi Islamic Bank PJSC

What Does The Institutional Ownership Tell Us About Abu Dhabi Islamic 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.

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 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. 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. Looking at our data, we can see that the largest shareholder is Emirates International Investment Company LLC with 39% of shares outstanding. For context, the second largest shareholder holds about 6.8% of the shares outstanding, followed by an ownership of 1.8% by the third-largest shareholder. Jawaan Awaidha Suhail Al Khaili, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Abu Dhabi Islamic Bank PJSC

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Shareholders would probably be interested to learn that insiders own shares in Abu Dhabi Islamic Bank PJSC. The insiders have a meaningful stake worth د.إ788m. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 46% stake in the company, and hence can't easily be ignored. 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 might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Abu Dhabi Islamic Bank PJSC you should know about.

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.

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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.