Mivtach Shamir Holdings Ltd's (TLV:MISH) most bullish insider is CEO Meir Shamir, and their holdings value went up by 8.1% last week

Key Insights

• Insiders appear to have a vested interest in Mivtach Shamir Holdings' growth, as seen by their sizeable ownership
• The top 2 shareholders own 52% of the company
• Institutional ownership in Mivtach Shamir Holdings is 38%

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If you want to know who really controls Mivtach Shamir Holdings Ltd (TLV:MISH), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 47% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 8.1% gain.

In the chart below, we zoom in on the different ownership groups of Mivtach Shamir Holdings.

View our latest analysis for Mivtach Shamir Holdings

What Does The Institutional Ownership Tell Us About Mivtach Shamir Holdings?

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.

As you can see, institutional investors have a fair amount of stake in Mivtach Shamir Holdings. 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. 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 Mivtach Shamir Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.

Mivtach Shamir Holdings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Meir Shamir with 40% of shares outstanding. The second and third largest shareholders are Clal Financial Management Ltd and Clal Pension And Gemel Ltd, with an equal amount of shares to their name at 12%.

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 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 Mivtach Shamir Holdings

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 most recent data indicates that insiders own a reasonable proportion of Mivtach Shamir Holdings Ltd. Insiders have a ₪1.5b stake in this ₪3.1b business. 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

The general public, who are usually individual investors, hold a 14% stake in Mivtach Shamir Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Mivtach Shamir Holdings , and understanding them should be part of your investment process.

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.