Abu Dhabi National Takaful Company PSC's (ADX:TKFL) market cap touched د.إ525m last week, benefiting both public companies who own 42% as well as institutions

Key Insights

• Significant control over Abu Dhabi National Takaful Company PSC by public companies implies that the general public has more power to influence management and governance-related decisions
• The top 2 shareholders own 69% of the company
• Institutions own 33% of Abu Dhabi National Takaful Company PSC

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To get a sense of who is truly in control of Abu Dhabi National Takaful Company PSC (ADX:TKFL), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 42% to be precise, is public companies. Put another way, the group faces the maximum upside potential (or downside risk).

Public companies gained the most after market cap touched د.إ525m last week, while institutions who own 33% also benefitted.

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

Check out our latest analysis for Abu Dhabi National Takaful Company PSC

What Does The Institutional Ownership Tell Us About Abu Dhabi National Takaful Company PSC?

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 Abu Dhabi National Takaful Company PSC. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Abu Dhabi National Takaful Company PSC, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Abu Dhabi National Takaful Company PSC. Abu Dhabi Islamic Bank PJSC is currently the largest shareholder, with 42% of shares outstanding. Tasameem Real Estate Company LLC is the second largest shareholder owning 27% of common stock, and East and West International Group holds about 12% of the company stock.

To make our study more interesting, we found that the top 2 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. 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 Takaful Company PSC

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

We note our data does not show any board members holding shares, personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Abu Dhabi National Takaful Company PSC. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

We can see that Private Companies own 12%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Public Company Ownership

Public companies currently own 42% of Abu Dhabi National Takaful Company PSC stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Abu Dhabi National Takaful Company PSC has 3 warning signs (and 1 which is significant) we think you should know about.

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.