Abu Dhabi National Insurance Company PJSC's (ADX:ADNIC) biggest owners are sovereign wealth funds who got richer after stock soared 6.4% last week

Every investor in Abu Dhabi National Insurance Company PJSC (ADX:ADNIC) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 49% to be precise, is sovereign wealth funds. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, sovereign wealth funds were the biggest beneficiaries of last week’s 6.4% gain.

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

View our latest analysis for Abu Dhabi National Insurance Company PJSC

What Does The Lack Of Institutional Ownership Tell Us About Abu Dhabi National Insurance Company PJSC?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Abu Dhabi National Insurance Company PJSC's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

We note that hedge funds don't have a meaningful investment in Abu Dhabi National Insurance Company PJSC. Mamoura Diversified Global Holding PJSC is currently the largest shareholder, with 25% of shares outstanding. With 24% and 10% of the shares outstanding respectively, Abu Dhabi Investment Council and Khalaf Bin Ahmad Al-Otaibah are the second and third largest shareholders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Abu Dhabi National Insurance Company PJSC

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.

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 most recent data indicates that insiders own a reasonable proportion of Abu Dhabi National Insurance Company PJSC. It has a market capitalization of just د.إ3.5b, and insiders have د.إ542m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 29% 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.

Private Company Ownership

It seems that Private Companies own 6.9%, of the Abu Dhabi National Insurance Company PJSC stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Abu Dhabi National Insurance Company PJSC is showing 1 warning sign in our investment analysis , you should know about...

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.