Fattal Holdings (1998) Ltd (TLV:FTAL) CEO David Fattal, the company's largest shareholder sees 3.3% reduction in holdings value

Key Insights

• Significant insider control over Fattal Holdings (1998) implies vested interests in company growth
• The largest shareholder of the company is David Fattal with a 56% stake
• Institutional ownership in Fattal Holdings (1998) is 24%

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Every investor in Fattal Holdings (1998) Ltd (TLV:FTAL) should be aware of the most powerful shareholder groups. With 56% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 3.3% decline in share price, insiders suffered the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Fattal Holdings (1998).

See our latest analysis for Fattal Holdings (1998)

What Does The Institutional Ownership Tell Us About Fattal Holdings (1998)?

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.

Fattal Holdings (1998) already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Fattal Holdings (1998), (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Fattal Holdings (1998). Looking at our data, we can see that the largest shareholder is the CEO David Fattal with 56% of shares outstanding. With such a huge stake, we infer that they have significant control of the future of the company. It's usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider with such skin in the game. Phoenix Excellence Pension and Provident Ltd. is the second largest shareholder owning 8.9% of common stock, and Migdal Mutual Funds Ltd. holds about 7.6% of the company stock.

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 Fattal Holdings (1998)

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders own more than half of Fattal Holdings (1998) Ltd. This gives them effective control of the company. That means insiders have a very meaningful ₪5.4b stake in this ₪9.6b business. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

With a 20% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Fattal Holdings (1998). 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Fattal Holdings (1998) better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Fattal Holdings (1998) (of which 1 is a bit concerning!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.