Stock Analysis

What Is The Ownership Structure Like For Fattal Holdings (1998) Ltd (TLV:FTAL)?

TASE:FTAL
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If you want to know who really controls Fattal Holdings (1998) Ltd (TLV:FTAL), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Fattal Holdings (1998) isn't enormous, but it's not particularly small either. It has a market capitalization of ₪5.1b, which means it would generally expect to see some institutions on the share registry. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. 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)

ownership-breakdown
TASE:FTAL Ownership Breakdown January 28th 2021

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

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.

As you can see, institutional investors have a fair amount of stake in Fattal Holdings (1998). 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. 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.

earnings-and-revenue-growth
TASE:FTAL Earnings and Revenue Growth January 28th 2021

Fattal Holdings (1998) is not owned by hedge funds. Our data shows that David Fattal is the largest shareholder with 62% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. For context, the second largest shareholder holds about 8.7% of the shares outstanding, followed by an ownership of 6.6% by the third-largest shareholder.

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)

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 most recent data indicates that insiders own the majority of Fattal Holdings (1998) Ltd. This means they can collectively make decisions for the company. Insiders own ₪3.5b worth of shares in the ₪5.1b company. That's extraordinary! It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

The general public holds a 13% stake in Fattal Holdings (1998). While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. Take risks for example - Fattal Holdings (1998) has 4 warning signs (and 2 which are a bit unpleasant) we think you should know about.

Of course this may not be the best stock to buy. So take a peek at this free 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. 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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