Y.H. Dimri Construction & Development Ltd's (TLV:DIMRI) most bullish insider is CEO Yigal Dimri, and their holdings value went up by 6.6% last week

Key Insights

• Significant insider control over Y.H. Dimri Construction & Development implies vested interests in company growth
• 63% of the company is held by a single shareholder (Yigal Dimri)
• 22% of Y.H. Dimri Construction & Development is held by Institutions

A look at the shareholders of Y.H. Dimri Construction & Development Ltd (TLV:DIMRI) can tell us which group is most powerful. With 63% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders were the biggest beneficiaries of last week’s 6.6% gain.

Let's delve deeper into each type of owner of Y.H. Dimri Construction & Development, beginning with the chart below.

View our latest analysis for Y.H. Dimri Construction & Development

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

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.

Y.H. Dimri Construction & Development already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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.

Hedge funds don't have many shares in Y.H. Dimri Construction & Development. Looking at our data, we can see that the largest shareholder is the CEO Yigal Dimri with 63% of shares outstanding. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. Meitav Investment House Ltd is the second largest shareholder owning 6.6% of common stock, and Migdal Mutual Funds Ltd. holds about 5.8% of the company stock.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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

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.

It seems that insiders own more than half the Y.H. Dimri Construction & Development Ltd stock. This gives them a lot of power. Insiders own ₪3.8b worth of shares in the ₪6.1b company. That's extraordinary! Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

With a 15% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Y.H. Dimri Construction & Development. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Y.H. Dimri Construction & Development better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Y.H. Dimri Construction & Development you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com