Both private companies who control a good portion of Duniec Bros. Ltd (TLV:DUNI) along with institutions must be dismayed after last week's 9.4% decrease

Key Insights

• The considerable ownership by private companies in Duniec Bros indicates that they collectively have a greater say in management and business strategy
• The top 2 shareholders own 52% of the company
• Insider ownership in Duniec Bros is 10%

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Every investor in Duniec Bros. Ltd (TLV:DUNI) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 52% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).

While institutions who own 24% came under pressure after market cap dropped to ₪1.8b last week,private companies took the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Duniec Bros.

Check out our latest analysis for Duniec Bros

What Does The Institutional Ownership Tell Us About Duniec Bros?

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.

We can see that Duniec Bros does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Duniec Bros' historic earnings and revenue below, but keep in mind there's always more to the story.

Duniec Bros is not owned by hedge funds. Our data shows that Asaz General Partner Company Ltd is the largest shareholder with 36% of shares outstanding. In comparison, the second and third largest shareholders hold about 16% and 9.2% of the stock. In addition, we found that Ronen Jaffa, the CEO has 4.0% of the shares allocated to their name.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 52% stake.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Duniec Bros

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.

It seems insiders own a significant proportion of Duniec Bros. Ltd. Insiders own ₪184m worth of shares in the ₪1.8b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 13% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Duniec Bros. 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 Company Ownership

It seems that Private Companies own 52%, of the Duniec Bros 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 Duniec Bros better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with Duniec Bros (including 2 which are a bit concerning) .

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.