Direct Finance of Direct Group (2006)Ltd (TLV:DIFI) surges 12%; public companies who own 44% shares profited along with institutions

Key Insights

• Significant control over Direct Finance of Direct Group (2006)Ltd by public companies implies that the general public has more power to influence management and governance-related decisions
• 52% of the business is held by the top 2 shareholders
• 40% of Direct Finance of Direct Group (2006)Ltd is held by Institutions

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To get a sense of who is truly in control of Direct Finance of Direct Group (2006)Ltd (TLV:DIFI), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are public companies with 44% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 12% increase in the stock price last week, public companies profited the most, but institutions who own 40% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about Direct Finance of Direct Group (2006)Ltd.

View our latest analysis for Direct Finance of Direct Group (2006)Ltd

What Does The Institutional Ownership Tell Us About Direct Finance of Direct Group (2006)Ltd?

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.

Direct Finance of Direct Group (2006)Ltd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Direct Finance of Direct Group (2006)Ltd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Direct Finance of Direct Group (2006)Ltd. Zur Shamir Holdings Ltd is currently the largest shareholder, with 44% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.9% and 7.7%, of the shares outstanding, respectively.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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

Insider Ownership Of Direct Finance of Direct Group (2006)Ltd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public, who are usually individual investors, hold a 16% stake in Direct Finance of Direct Group (2006)Ltd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

It appears to us that public companies own 44% of Direct Finance of Direct Group (2006)Ltd. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Direct Finance of Direct Group (2006)Ltd is showing 2 warning signs in our investment analysis , and 1 of those is a bit concerning...

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.