What Kind Of Shareholders Hold The Majority In Y.H. Dimri Construction & Development Ltd's (TLV:DIMRI) Shares?

Every investor in Y.H. Dimri Construction & Development Ltd (TLV:DIMRI) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

Y.H. Dimri Construction & Development isn't enormous, but it's not particularly small either. It has a market capitalization of ₪3.0b, which means it would generally expect to see some institutions on the share registry. In the chart below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Y.H. Dimri Construction & Development.

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

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

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 Y.H. Dimri Construction & Development. 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 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. With 7.6% and 5.7% of the shares outstanding respectively, Clal Pension And Gemel Ltd and Meitav DASH Investments Ltd are the second and third largest shareholders.

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. As far I 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 company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 information suggests that insiders own more than half of Y.H. Dimri Construction & Development Ltd. This gives them effective control of the company. That means they own ₪1.9b worth of shares in the ₪3.0b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, with a 13% stake in the company, will not 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.

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. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Y.H. Dimri Construction & Development (of which 1 is concerning!) you should know about.

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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