What Kind Of Shareholders Own N.R. Spuntech Industries Ltd. (TLV:SPNTC)?

The big shareholder groups in N.R. Spuntech Industries Ltd. (TLV:SPNTC) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. We also tend to see lower insider ownership in companies that were previously publicly owned.

N.R. Spuntech Industries is a smaller company with a market capitalization of ₪601m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about N.R. Spuntech Industries.

Check out our latest analysis for N.R. Spuntech Industries

What Does The Institutional Ownership Tell Us About N.R. Spuntech Industries?

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 N.R. Spuntech Industries. 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 N.R. Spuntech Industries' historic earnings and revenue below, but keep in mind there's always more to the story.

N.R. Spuntech Industries is not owned by hedge funds. The company's largest shareholder is Nissan Medical Industries Ltd., with ownership of 59%. This implies that they have majority interest control of the future of the company. Gandir Investments Ltd is the second largest shareholder owning 9.8% of common stock, and Psagot Investment House Ltd. holds about 4.8% of the company stock.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of N.R. Spuntech Industries

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We can see that insiders own shares in N.R. Spuntech Industries Ltd.. As individuals, the insiders collectively own ₪8.6m worth of the ₪601m company. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

The general public holds a 13% stake in N.R. Spuntech Industries. 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.

Private Company Ownership

It seems that Private Companies own 9.8%, of the N.R. Spuntech Industries stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

We can see that public companies hold 59% of the N.R. Spuntech Industries shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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. For instance, we've identified 4 warning signs for N.R. Spuntech Industries (1 makes us a bit uncomfortable) 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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