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key insights
- Large retail investor stakes in Abu Dhabi Islamic Bank PJSC suggest they collectively have a greater say in management and business strategy
- The top four shareholders of the company hold 50% of the shares
- analyst forecast Along with ownership data helps to have a robust understanding of the business’ prospects
If you want to know who actually controls Abu Dhabi Islamic Bank PJSC (ADX: ADIB), then you will have to look at the makeup of its shared registry. The group that holds the most shares in the company, about 46% to be precise, are retail investors. In other words, the group will gain the most (or lose the most) from their investment in the company.
Meanwhile, private equity firms account for 39% of the company’s shareholders.
Let us delve into each type of owner of Abu Dhabi Islamic Bank PJSC starting with the table below.
See our latest analysis for Abu Dhabi Islamic Bank PJSC
What does institutional ownership tell us about Abu Dhabi Islamic Bank PJSC?
Institutional investors often compare their own returns to those of a generally followed index. As such, they often consider buying larger companies included in the relevant benchmark index.
As you can see, institutional investors have a significant stake in Abu Dhabi Islamic Bank PJSC. This means that the analysts who work for these institutions have seen the stock and they like it. But like everyone else, they could be wrong. If multiple institutions change their views on a stock at the same time, you could see the share price drop rapidly. Therefore, it is worth looking at the earnings history of Abu Dhabi Islamic Bank PJSC below. Of course, the future is what really matters.
Hedge funds have a small stake in Abu Dhabi Islamic Bank PJSC. The company’s largest shareholder is Emirates International Investment Company LLC, holding 39% of the shares. Meanwhile, the second and third largest shareholders hold 7.6% and 1.8% of the issued shares, respectively. The third largest shareholder, Jawaan Awaidha Suhail Al Khaili, also happens to be chairman.
Our research also revealed the fact that approximately 50% of companies are controlled by the top 4 shareholders, suggesting that these owners have significant influence over the business.
While it makes sense to study institutional ownership data for companies, it also makes sense to study analyst sentiment to see where the wind is headed. There are plenty of analysts covering this stock, so it’s worth checking out their forecasts as well.
Insider Ownership of Abu Dhabi Islamic Bank PJSC
The definition of a company insider can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, at least including board members. The management of the company is accountable to the board of directors, which is supposed to represent the interests of shareholders. It is worth noting that sometimes top management are themselves board members.
It is positive when insider ownership shows that leadership thinks like the real owners of the company. However, high insider ownership can also confer enormous power on a small group of people within the company. In some cases this can be negative.
We can report that insiders do hold shares in Abu Dhabi Islamic Bank PJSC. Insiders hold significant stakes worth $618 million. It’s great to see this level of investment.you can See here to see if those insiders have been buying lately.
General public ownership
The public, including retail investors, owns 46% of the company, so it shouldn’t be ignored. This level of ownership, while substantial, may not be enough to change company policy if decisions are not in sync with other large shareholders.
private equity
The 39% owned private equity firm can play a role in the development of corporate strategy focused on value creation. Some investors may be encouraged by this, because private equity can sometimes encourage strategies that help the market see value in companies. Alternatively, these holders may exit their investment after it is made public.
Next step:
While it’s well worth considering the different groups that own a company, there are other, more important factors.Case in point: we found 2 warning signs for Abu Dhabi Islamic Bank PJSC You should know that one of these should not be ignored.
finally the future is the most important. You can access this free Reports on analyst forecasts for companies.
Note: Figures in this article are calculated using data from the trailing 12 months, which refers to the 12-month period ending on the last day of the month on which the financial statements are dated. This may not be consistent with the annual reported figures for the full year.
Valuation is complicated, but we’re helping make it simple.
Find out if Abu Dhabi Islamic Bank PJSC is potentially overvalued or undervalued by viewing our comprehensive analysis which includes Fair value estimates, risks and caveats, dividends, insider trading and financial health.
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This article by Simply Wall St is general in nature. We use only an unbiased methodology to provide reviews based on historical data and analyst forecasts, 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 into account your objectives or your financial situation. Our goal is to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no positions in any of the stocks mentioned.
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