Retail investors account for 57% of First Abu Dhabi Bank P.J.S.C.'s (ADX:FAB) ownership, while sovereign wealth funds account for 38%

Key Insights

• The considerable ownership by retail investors in First Abu Dhabi Bank P.J.S.C indicates that they collectively have a greater say in management and business strategy
• A total of 25 investors have a majority stake in the company with 43% ownership
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

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If you want to know who really controls First Abu Dhabi Bank P.J.S.C. (ADX:FAB), 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 retail investors with 57% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, sovereign wealth funds make up 38% of the company’s shareholders.

Let's delve deeper into each type of owner of First Abu Dhabi Bank P.J.S.C, beginning with the chart below.

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

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.

We can see that First Abu Dhabi Bank P.J.S.C 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 First Abu Dhabi Bank P.J.S.C's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in First Abu Dhabi Bank P.J.S.C. The company's largest shareholder is Mubadala Investment Company PJSC, with ownership of 38%. Meanwhile, the second and third largest shareholders, hold 1.7% and 1.3%, of the shares outstanding, respectively.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

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.

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 cannot confirm that board members are 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, who are usually individual investors, hold a substantial 57% stake in First Abu Dhabi Bank P.J.S.C, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

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 instance, we've identified 1 warning sign for First Abu Dhabi Bank P.J.S.C that you should be aware of.

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.