How Much Of First Abu Dhabi Bank P.J.S.C. (ADX:FAB) Do Institutions Own?

By
Simply Wall St
Published
July 25, 2021
ADX:FAB
Source: Shutterstock

The big shareholder groups in First Abu Dhabi Bank P.J.S.C. (ADX:FAB) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

First Abu Dhabi Bank P.J.S.C has a market capitalization of د.إ178b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about First Abu Dhabi Bank P.J.S.C.

View our latest analysis for First Abu Dhabi Bank P.J.S.C

ownership-breakdown
ADX:FAB Ownership Breakdown July 26th 2021

What Does The Institutional Ownership Tell Us About First Abu Dhabi Bank P.J.S.C?

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.

As you can see, institutional investors have a fair amount of stake in First Abu Dhabi Bank P.J.S.C. 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 First Abu Dhabi Bank P.J.S.C's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
ADX:FAB Earnings and Revenue Growth July 26th 2021

First Abu Dhabi Bank P.J.S.C is not owned by hedge funds. Abu Dhabi Investment Council is currently the company's largest shareholder with 33% of shares outstanding. Mamoura Diversified Global Holding PJSC is the second largest shareholder owning 3.7% of common stock, and The Vanguard Group, Inc. holds about 1.5% of the company stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. 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 First Abu Dhabi Bank P.J.S.C

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

We note our data does not show any board members holding shares, personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public collectively holds 59% of First Abu Dhabi Bank P.J.S.C shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand First Abu Dhabi Bank P.J.S.C better, we need to consider many other factors. For example, we've discovered 1 warning sign for First Abu Dhabi Bank P.J.S.C that you should be aware of before investing here.

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. 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.
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