F.I.B.I. Holdings Ltd (TLV:FIBIH) insiders have significant skin in the game with 29% ownership

Key Insights

• F.I.B.I. Holdings' significant insider ownership suggests inherent interests in company's expansion
• 52% of the business is held by the top 3 shareholders
• Institutional ownership in F.I.B.I. Holdings is 18%

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. Put another way, the group faces the maximum upside potential (or downside risk).

So it follows, every decision made by insiders of F.I.B.I. Holdings regarding the company's future would be crucial to them.

Let's take a closer look to see what the different types of shareholders can tell us about F.I.B.I. Holdings.

Check out our latest analysis for F.I.B.I. Holdings

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

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in F.I.B.I. Holdings. 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. 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.

Hedge funds don't have many shares in F.I.B.I. Holdings. Zadik Bino is currently 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%.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 F.I.B.I. Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 information suggests that insiders maintain a significant holding in F.I.B.I. Holdings Ltd. It is very interesting to see that insiders have a meaningful ₪2.1b stake in this ₪7.2b business. 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 group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

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

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand F.I.B.I. Holdings better, we need to consider many other factors. Be aware that F.I.B.I. Holdings is showing 1 warning sign in our investment analysis , you should know about...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.