Retail investors in Abu Dhabi National Insurance Company PJSC (ADX:ADNIC) are its biggest bettors, and their bets paid off as stock gained 10% last week

Key Insights

• The considerable ownership by retail investors in Abu Dhabi National Insurance Company PJSC indicates that they collectively have a greater say in management and business strategy
• The top 6 shareholders own 42% of the company
• Insider ownership in Abu Dhabi National Insurance Company PJSC is 10%

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To get a sense of who is truly in control of Abu Dhabi National Insurance Company PJSC (ADX:ADNIC), it is important to understand the ownership structure of the business. With 58% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, retail investors collectively scored the highest last week as the company hit د.إ4.1b market cap following a 10% gain in the stock.

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?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

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. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. 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.

Hedge funds don't have many shares in Abu Dhabi National Insurance Company PJSC. Looking at our data, we can see that the largest shareholder is Mubadala Investment Company PJSC with 25% of shares outstanding. Khalaf Bin Ahmad Al-Otaibah is the second largest shareholder owning 10% of common stock, and SBR Investments, Llc holds about 7.0% of the company stock.

On studying our ownership data, we found that 6 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.إ4.1b, and insiders have د.إ415m worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public -- including retail investors -- own 58% of Abu Dhabi National Insurance Company PJSC. 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.

Private Company Ownership

Our data indicates that Private Companies hold 7.0%, 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Abu Dhabi National Insurance Company PJSC better, we need to consider many other factors. For example, we've discovered 3 warning signs for Abu Dhabi National Insurance Company PJSC (1 is concerning!) that you should be aware of before investing here.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.