Recent 11% pullback would hurt Menif - Financial Services Ltd (TLV:MNIF) insiders

Key Insights

• Insiders appear to have a vested interest in Menif - Financial Services' growth, as seen by their sizeable ownership
• 58% of the business is held by the top 2 shareholders
• Institutions own 17% of Menif - Financial Services

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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 52% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to ₪1.3b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of Menif - Financial Services, beginning with the chart below.

See our latest analysis for Menif - Financial Services

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

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.

We can see that Menif - Financial Services does have institutional investors; and they hold a good portion of the company's stock. 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. 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. The company's largest shareholder is Meir Shamir, with ownership of 49%. Clal Pension And Gemel Ltd is the second largest shareholder owning 9.5% of common stock, and Maor Duak holds about 3.5% of the company stock.

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 Menif - Financial Services

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.

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 most recent data indicates that insiders own the majority of Menif - Financial Services Ltd. This means they can collectively make decisions for the company. That means they own ₪658m worth of shares in the ₪1.3b 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 31% stake in Menif - Financial Services. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Menif - Financial Services better, we need to consider many other factors. For instance, we've identified 2 warning signs for Menif - Financial Services (1 is significant) that you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.