More Provident Funds Ltd's (TLV:MPP) stock price dropped 10% last week; public companies would not be happy

Key Insights

• The considerable ownership by public companies in More Provident Funds indicates that they collectively have a greater say in management and business strategy
• Y.D. More Investments Ltd owns 66% of the company
• Insider ownership in More Provident Funds is 12%

A look at the shareholders of More Provident Funds Ltd (TLV:MPP) can tell us which group is most powerful. We can see that public companies own the lion's share in the company with 66% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 10% decline in share price, public companies suffered the most losses.

In the chart below, we zoom in on the different ownership groups of More Provident Funds.

See our latest analysis for More Provident Funds

What Does The Institutional Ownership Tell Us About More Provident Funds?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Since institutions own only a small portion of More Provident Funds, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Hedge funds don't have many shares in More Provident Funds. The company's largest shareholder is Y.D. More Investments Ltd, with ownership of 66%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Or Keren is the second largest shareholder owning 12% of common stock, and Forest Investments Ltd. holds about 1.1% of the company stock.

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 More Provident Funds

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 a reasonable proportion of More Provident Funds Ltd. Insiders have a ₪83m stake in this ₪685m 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 19% stake in More Provident Funds. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

It appears to us that public companies own 66% of More Provident Funds. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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. Be aware that More Provident Funds is showing 2 warning signs in our investment analysis , you should know about...

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.