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To get an idea of who really controls Abu Dhabi Commercial Bank PJSC (ADX:ADCB), it is important to understand the ownership structure of the company. And the group that holds the biggest slice of the pie are the sovereign wealth funds with 60% ownership. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.
Individual investors, meanwhile, represent 33% of the company’s shareholders.
Let’s take a closer look at what different types of shareholders can tell us about Abu Dhabi Commercial Bank PJSC.
See our latest analysis for Abu Dhabi Commercial Bank PJSC
What does institutional ownership tell us about Abu Dhabi Commercial Bank PJSC?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors hold a sizeable share of Abu Dhabi Commercial Bank PJSC. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking the past earnings trajectory of Abu Dhabi Commercial Bank PJSC (below). Of course, keep in mind that there are other factors to consider as well.
We note that hedge funds have no significant investment in Abu Dhabi Commercial Bank PJSC. Looking at our data, we can see that the major shareholder is Mubadala Investment Company PJSC with 60% of the outstanding shares. This essentially means that they have considerable influence, if not absolute control, over the future of the company. In comparison, the second and third shareholders hold around 1.6% and 1.3% of the shares.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. A number of analysts cover the stock, so you can look at growth forecasts quite easily.
Owned by Abu Dhabi Commercial Bank PJSC Insider
The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our data does not allow us to confirm that the members of the board of directors personally hold shares. Since we do not track insider ownership, we may have missing data. It would therefore be interesting to evaluate here the remuneration and the duration of the mandate of the CEO.
General public property
With a 33% stake, the general public, consisting mainly of individual investors, has some influence over Abu Dhabi Commercial Bank PJSC. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
Next steps:
It is always useful to think about the different groups that own shares in a company. But to better understand Abu Dhabi Commercial Bank PJSC, we need to consider many other factors. Consider the risks, for example. Every business has them, and we’ve spotted 1 warning sign for Abu Dhabi Commercial Bank PJSC you should know.
But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
