Stock Analysis

Massivit 3D Printing Technologies Ltd's (TLV:MSVT) most bullish insider is Top Key Executive Gershon Miller, and their holdings value went up by 10% last week

TASE:MSVT
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To get a sense of who is truly in control of Massivit 3D Printing Technologies Ltd (TLV:MSVT), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 35% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit ₪355m market cap following a 10% gain in the stock.

Let's delve deeper into each type of owner of Massivit 3D Printing Technologies, beginning with the chart below.

Check out our latest analysis for Massivit 3D Printing Technologies

ownership-breakdown
TASE:MSVT Ownership Breakdown April 21st 2022

What Does The Institutional Ownership Tell Us About Massivit 3D Printing Technologies?

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.

We can see that Massivit 3D Printing Technologies does have institutional investors; and they hold a good portion of the company's stock. 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 Massivit 3D Printing Technologies' historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
TASE:MSVT Earnings and Revenue Growth April 21st 2022

Massivit 3D Printing Technologies is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Massivit 3D Printing Technologies' case, its Top Key Executive, Gershon Miller, is the largest shareholder, holding 8.2% of shares outstanding. With 7.3% and 6.9% of the shares outstanding respectively, Alpha LTI Ltd and Migdal Mutual Funds Ltd. are the second and third largest shareholders.

We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. 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 Massivit 3D Printing Technologies

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.

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 Massivit 3D Printing Technologies Ltd. Insiders have a ₪124m stake in this ₪355m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 34% stake in the company, and hence can't easily be ignored. 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 7.3%, of the Massivit 3D Printing Technologies 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.

Public Company Ownership

Public companies currently own 6.4% of Massivit 3D Printing Technologies stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for Massivit 3D Printing Technologies that you should be aware of.

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.