Retail investors who hold 46% of Clal Insurance Enterprises Holdings Ltd. (TLV:CLIS) gained 10%, institutions profited as well

Key Insights

• The considerable ownership by retail investors in Clal Insurance Enterprises Holdings indicates that they collectively have a greater say in management and business strategy
• A total of 16 investors have a majority stake in the company with 51% ownership
• Institutional ownership in Clal Insurance Enterprises Holdings is 34%

To get a sense of who is truly in control of Clal Insurance Enterprises Holdings Ltd. (TLV:CLIS), it is important to understand the ownership structure of the business. With 46% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Retail investors gained the most after market cap touched ₪5.6b last week, while institutions who own 34% also benefitted.

In the chart below, we zoom in on the different ownership groups of Clal Insurance Enterprises Holdings.

See our latest analysis for Clal Insurance Enterprises Holdings

What Does The Institutional Ownership Tell Us About Clal Insurance Enterprises Holdings?

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.

As you can see, institutional investors have a fair amount of stake in Clal Insurance Enterprises 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. 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 Clal Insurance Enterprises Holdings' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Clal Insurance Enterprises Holdings. Al-Rov Properties & Building (1983) Ltd is currently the largest shareholder, with 15% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.1% and 4.6% of the stock.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 16 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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 Clal Insurance Enterprises Holdings

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.

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.

We can report that insiders do own shares in Clal Insurance Enterprises Holdings Ltd.. The insiders have a meaningful stake worth ₪288m. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 46% 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.

Private Company Ownership

Our data indicates that Private Companies hold 15%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

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.