Bet Shemesh Engines Holdings (1997) Ltd's (TLV:BSEN) large institutional owners must be happy as stock continues to impress, up 8.2% over the past week

Key Insights

• Institutions' substantial holdings in Bet Shemesh Engines Holdings (1997) implies that they have significant influence over the company's share price
• 52% of the business is held by the top 4 shareholders
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of Bet Shemesh Engines Holdings (1997) Ltd (TLV:BSEN), it is important to understand the ownership structure of the business. We can see that institutions own the lion's share in the company with 53% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And as as result, institutional investors reaped the most rewards after the company's stock price gained 8.2% last week. One-year return to shareholders is currently 216% and last week’s gain was the icing on the cake.

Let's delve deeper into each type of owner of Bet Shemesh Engines Holdings (1997), beginning with the chart below.

View our latest analysis for Bet Shemesh Engines Holdings (1997)

What Does The Institutional Ownership Tell Us About Bet Shemesh Engines Holdings (1997)?

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.

Bet Shemesh Engines Holdings (1997) 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. 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 Bet Shemesh Engines Holdings (1997), (below). Of course, keep in mind that there are other factors to consider, too.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Bet Shemesh Engines Holdings (1997). The company's largest shareholder is First Israel Mezzanine Investors Ltd., with ownership of 26%. The second and third largest shareholders are Menora Mivtachim Pensions & Gemel Ltd. and More Investment House Ltd., with an equal amount of shares to their name at 8.8%.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Bet Shemesh Engines Holdings (1997)

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

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

With a 21% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Bet Shemesh Engines Holdings (1997). This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Equity Ownership

With a stake of 26%, private equity firms could influence the Bet Shemesh Engines Holdings (1997) board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 3 warning signs for Bet Shemesh Engines Holdings (1997) (1 shouldn't be ignored) that you should be aware of.

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.