What Is The Ownership Structure Like For Harel Insurance Investments & Financial Services Ltd (TLV:HARL)?

September 06, 2020
  •  Updated
October 03, 2022
TASE:HARL
Source: Shutterstock

If you want to know who really controls Harel Insurance Investments & Financial Services Ltd (TLV:HARL), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that have been privatized tend to have low insider ownership.

Harel Insurance Investments & Financial Services isn't enormous, but it's not particularly small either. It has a market capitalization of ₪4.5b, which means it would generally expect to see some institutions on the share registry. In the chart below, we can see that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about Harel Insurance Investments & Financial Services.

View our latest analysis for Harel Insurance Investments & Financial Services

ownership-breakdown
TASE:HARL Ownership Breakdown September 7th 2020

What Does The Institutional Ownership Tell Us About Harel Insurance Investments & 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.

As you can see, institutional investors have a fair amount of stake in Harel Insurance Investments & Financial Services. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Harel Insurance Investments & Financial Services, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
TASE:HARL Earnings and Revenue Growth September 7th 2020

Harel Insurance Investments & Financial Services is not owned by hedge funds. Our data shows that G.Y.N. Economic Advice & Management Ltd is the largest shareholder with 46% of shares outstanding. With 2.3% and 1.7% of the shares outstanding respectively, Dimensional Fund Advisors L.P. and The Phoenix Investment and Finances Ltd. are the second and third largest shareholders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 Harel Insurance Investments & Financial Services

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

Our information suggests that Harel Insurance Investments & Financial Services Ltd insiders own under 1% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own ₪13m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public holds a 39% stake in Harel Insurance Investments & 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.

Private Company Ownership

Our data indicates that Private Companies hold 46%, 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:

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

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.

If you decide to trade Harel Insurance Investments & Financial Services, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted


Valuation is complex, but we're helping make it simple.

Find out whether Harel Insurance Investments & Financial Services is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis