Great week for Z.M.H Hammerman Ltd (TLV:ZMH) institutional investors after losing 17% over the previous year

Key Insights

• Institutions' substantial holdings in Z.M.H Hammerman implies that they have significant influence over the company's share price
• A total of 6 investors have a majority stake in the company with 53% ownership
• 22% of Z.M.H Hammerman is held by insiders

A look at the shareholders of Z.M.H Hammerman Ltd (TLV:ZMH) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 33% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

After a year of 17% losses, last week’s 14% gain would be welcomed by institutional investors as a likely sign that returns might start trending higher.

In the chart below, we zoom in on the different ownership groups of Z.M.H Hammerman.

View our latest analysis for Z.M.H Hammerman

What Does The Institutional Ownership Tell Us About Z.M.H Hammerman?

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.

As you can see, institutional investors have a fair amount of stake in Z.M.H Hammerman. 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. 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 Z.M.H Hammerman's historic earnings and revenue below, but keep in mind there's always more to the story.

Z.M.H Hammerman is not owned by hedge funds. Our data shows that Battalion Entrepreneurship and Consulting Ltd. is the largest shareholder with 11% of shares outstanding. In comparison, the second and third largest shareholders hold about 10.0% and 9.1% of the stock. In addition, we found that Haim Feiglin, the CEO has 6.7% of the shares allocated to their name.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 Z.M.H Hammerman

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Z.M.H Hammerman Ltd. Insiders own ₪100m worth of shares in the ₪458m company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 23% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Z.M.H Hammerman. 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 22%, of the company's shares. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 3 warning signs for Z.M.H Hammerman (2 shouldn't be ignored) 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.

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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.