Stock Analysis

What Kind Of Shareholders Hold The Majority In F.I.B.I. Holdings Ltd's (TLV:FIBIH) Shares?

TASE:FIBIH
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A look at the shareholders of F.I.B.I. Holdings Ltd (TLV:FIBIH) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

F.I.B.I. Holdings isn't enormous, but it's not particularly small either. It has a market capitalization of ₪3.3b, which means it would generally expect to see some institutions on the share registry. In the chart below, we can see that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about F.I.B.I. Holdings.

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

ownership-breakdown
TASE:FIBIH Ownership Breakdown December 24th 2020

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. 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 F.I.B.I. Holdings, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
TASE:FIBIH Earnings and Revenue Growth December 24th 2020

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%.

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. 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 company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

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 ₪946m stake in this ₪3.3b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public holds a 36% 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 might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the 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.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

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. 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.
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