Retail investors account for 56% of First Abu Dhabi Bank P.J.S.C.'s (ADX:FAB) ownership, while sovereign wealth funds account for 38%

Key Insights

• The considerable ownership by retail investors in First Abu Dhabi Bank P.J.S.C indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 44% of the company
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

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Every investor in First Abu Dhabi Bank P.J.S.C. (ADX:FAB) should be aware of the most powerful shareholder groups. With 56% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And sovereign wealth funds on the other hand have a 38% ownership in the company.

Let's take a closer look to see what the different types of shareholders can tell us about First Abu Dhabi Bank P.J.S.C.

See our latest analysis for First Abu Dhabi Bank P.J.S.C

What Does The Institutional Ownership Tell Us About First Abu Dhabi Bank P.J.S.C?

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.

First Abu Dhabi Bank P.J.S.C already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 First Abu Dhabi Bank P.J.S.C, (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 First Abu Dhabi Bank P.J.S.C. Mubadala Investment Company PJSC is currently the largest shareholder, with 38% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder owning 1.8% of common stock, and BlackRock, Inc. holds about 1.3% of the company stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of First Abu Dhabi Bank P.J.S.C

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.

We note our data does not show any board members holding shares, personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public -- including retail investors -- own 56% of First Abu Dhabi Bank P.J.S.C. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand First Abu Dhabi Bank P.J.S.C better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with First Abu Dhabi Bank P.J.S.C , and understanding them should be part of your investment process.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.