Individual investors among Abu Dhabi National Insurance Company PJSC's (ADX:ADNIC) largest shareholders, saw gain in holdings value after stock jumped 12% last week

Key Insights

• The considerable ownership by individual investors in Abu Dhabi National Insurance Company PJSC indicates that they collectively have a greater say in management and business strategy
• The top 8 shareholders own 48% of the company
• Insider ownership in Abu Dhabi National Insurance Company PJSC is 16%

A look at the shareholders of Abu Dhabi National Insurance Company PJSC (ADX:ADNIC) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 52% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, individual investors collectively scored the highest last week as the company hit د.إ3.6b market cap following a 12% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Abu Dhabi National Insurance Company PJSC.

See 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 could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. 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. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Abu Dhabi National Insurance Company PJSC, for yourself, below.

We note that hedge funds don't have a meaningful investment in Abu Dhabi National Insurance Company PJSC. The company's largest shareholder is Mubadala Investment Company PJSC, with ownership of 25%. In comparison, the second and third largest shareholders hold about 10% and 6.9% of the stock.

Our studies suggest that the top 8 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.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Abu Dhabi National Insurance Company PJSC

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Our most recent data indicates that insiders own a reasonable proportion of Abu Dhabi National Insurance Company PJSC. Insiders own د.إ574m worth of shares in the د.إ3.6b company. 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 52% of Abu Dhabi National Insurance Company PJSC. 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.

Private Company Ownership

Our data indicates that Private Companies hold 6.9%, of the company's shares. 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:

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. Case in point: We've spotted 1 warning sign for Abu Dhabi National Insurance Company PJSC you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com