Menif - Financial Services Ltd (TLV:MNIF) adds ₪96m in market cap and insiders have a 53% stake in that gain

Key Insights

• Insiders appear to have a vested interest in Menif - Financial Services' growth, as seen by their sizeable ownership
• 67% of the business is held by the top 2 shareholders
• Institutional ownership in Menif - Financial Services is 31%

To get a sense of who is truly in control of Menif - Financial Services Ltd (TLV:MNIF), it is important to understand the ownership structure of the business. With 53% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit ₪975m market cap following a 11% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Menif - Financial Services.

See our latest analysis for Menif - Financial Services

What Does The Institutional Ownership Tell Us About Menif - Financial Services?

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.

Menif - Financial Services 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Menif - Financial Services' earnings history below. Of course, the future is what really matters.

Menif - Financial Services is not owned by hedge funds. Our data shows that Meir Shamir is the largest shareholder with 49% of shares outstanding. With 18% and 9.6% of the shares outstanding respectively, Israel Discount Bank Ltd., Asset Management Arm and Clal Pension And Gemel Ltd are the second and third largest shareholders. Furthermore, CEO Maor Duak is the owner of 3.5% of the company's shares.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Menif - Financial Services

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

It seems that insiders own more than half the Menif - Financial Services Ltd stock. This gives them a lot of power. So they have a ₪517m stake in this ₪975m business. 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-- including retail investors -- own 16% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Menif - Financial Services 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. 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.