Insiders the biggest winners as F.I.B.I. Holdings Ltd's (TLV:FIBIH) market cap rises to ₪5.6b

Key Insights

• F.I.B.I. Holdings' significant insider ownership suggests inherent interests in company's expansion
• The top 3 shareholders own 52% of the company
• Institutional ownership in F.I.B.I. Holdings is 19%

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. With 29% stake, individual insiders 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.

Clearly, insiders benefitted the most after the company's market cap rose by ₪238m last week.

In the chart below, we zoom in on the different ownership groups of F.I.B.I. Holdings.

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.

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. Looking at our data, we can see that the largest shareholder is Zadik Bino 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.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

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. 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.

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 ₪1.6b stake in this ₪5.6b 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. 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:

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 this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com