With 59% ownership, Y.H. Dimri Construction & Development Ltd (TLV:DIMRI) insiders have a lot at stake

Key Insights

• Y.H. Dimri Construction & Development's significant insider ownership suggests inherent interests in company's expansion
• Yigal Dimri owns 59% of the company
• Institutional ownership in Y.H. Dimri Construction & Development is 22%

Every investor in Y.H. Dimri Construction & Development Ltd (TLV:DIMRI) should be aware of the most powerful shareholder groups. With 59% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

So, insiders of Y.H. Dimri Construction & Development have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.

Let's take a closer look to see what the different types of shareholders can tell us about Y.H. Dimri Construction & Development.

Check out our latest analysis for Y.H. Dimri Construction & Development

What Does The Institutional Ownership Tell Us About Y.H. Dimri Construction & Development?

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 Y.H. Dimri Construction & Development. 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. 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 Y.H. Dimri Construction & Development, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Y.H. Dimri Construction & Development. The company's CEO Yigal Dimri is the largest shareholder with 59% of shares outstanding. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers. The second and third largest shareholders are Migdal Mutual Funds Ltd. and Clal Pension And Gemel Ltd, with an equal amount of shares to their name at 5.4%.

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 as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Y.H. Dimri Construction & Development

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Y.H. Dimri Construction & Development Ltd. This means they can collectively make decisions for the company. Insiders own ₪4.3b worth of shares in the ₪7.4b company. That's extraordinary! Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

With a 20% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Y.H. Dimri Construction & Development. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. To that end, you should learn about the 3 warning signs we've spotted with Y.H. Dimri Construction & Development (including 1 which can't be ignored) .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.