F.I.B.I. Holdings Ltd (TLV:FIBIH) adds ₪191m in market cap and insiders have a 29% stake in that gain

Key Insights

• Insiders appear to have a vested interest in F.I.B.I. Holdings' growth, as seen by their sizeable ownership
• A total of 3 investors have a majority stake in the company with 52% ownership
• Institutions own 19% of F.I.B.I. Holdings

To get a sense of who is truly in control of F.I.B.I. Holdings Ltd (TLV:FIBIH), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 29% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit ₪6.0b market cap following a 3.3% gain in the stock.

Let's delve deeper into each type of owner of F.I.B.I. Holdings, beginning with the chart below.

See our latest analysis for F.I.B.I. Holdings

What Does The Institutional Ownership Tell Us About F.I.B.I. Holdings?

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.

F.I.B.I. Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see F.I.B.I. Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in F.I.B.I. Holdings. Our data shows that Zadik Bino is the largest shareholder with 29% of shares outstanding. The second and third largest shareholders are Dolphin Energies Ltd. and Sing Acquisitions Pte. Ltd., with an equal amount of shares to their name at 12%.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 52% stake.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of F.I.B.I. Holdings

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 F.I.B.I. Holdings Ltd. It has a market capitalization of just ₪6.0b, and insiders have ₪1.8b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 29% stake in F.I.B.I. Holdings. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 23%, of the F.I.B.I. Holdings stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that F.I.B.I. Holdings is showing 1 warning sign in our investment analysis , you should know about...

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.