I.B.I. Investment House Ltd's (TLV:IBI) most bullish insider is CEO David Lubetzky, and their holdings value went up by 6.9% last week

Key Insights

• Insiders appear to have a vested interest in I.B.I. Investment House's growth, as seen by their sizeable ownership
• The top 3 shareholders own 57% of the company
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

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To get a sense of who is truly in control of I.B.I. Investment House Ltd (TLV:IBI), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 78% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders were the biggest beneficiaries of last week’s 6.9% gain.

In the chart below, we zoom in on the different ownership groups of I.B.I. Investment House.

Check out our latest analysis for I.B.I. Investment House

What Does The Institutional Ownership Tell Us About I.B.I. Investment House?

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.

Institutions have a very small stake in I.B.I. Investment House. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

I.B.I. Investment House is not owned by hedge funds. The company's CEO David Lubetzky is the largest shareholder with 20% of shares outstanding. David Weisberg is the second largest shareholder owning 20% of common stock, and Emanuel Kook holds about 18% of the company stock. Interestingly, the second-largest shareholder, David Weisberg is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 57% stake.

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 I.B.I. Investment House

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own the majority of I.B.I. Investment House Ltd. This means they can collectively make decisions for the company. That means they own ₪2.4b worth of shares in the ₪3.1b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 19% stake in I.B.I. Investment House. 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 I.B.I. Investment House better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for I.B.I. Investment House you should know about.

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.