How Many Menivim - The New Reit Ltd (TLV:MNRT) Shares Do Institutions Own?

By
Simply Wall St
Published
January 17, 2022
TASE:MNRT
Source: Shutterstock

If you want to know who really controls Menivim - The New Reit Ltd (TLV:MNRT), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

Menivim - The New Reit is a smaller company with a market capitalization of ₪1.6b, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Menivim - The New Reit.

View our latest analysis for Menivim - The New Reit

ownership-breakdown
TASE:MNRT Ownership Breakdown January 17th 2022

What Does The Institutional Ownership Tell Us About Menivim - The New Reit?

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.

We can see that Menivim - The New Reit does have institutional investors; and they hold a good portion of the company's stock. 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 Menivim - The New Reit, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
TASE:MNRT Earnings and Revenue Growth January 17th 2022

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in Menivim - The New Reit. Clal Pension And Gemel Ltd is currently the company's largest shareholder with 14% of shares outstanding. In comparison, the second and third largest shareholders hold about 12% and 11% of the stock.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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

Insider Ownership Of Menivim - The New Reit

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

Our data suggests that insiders own under 1% of Menivim - The New Reit Ltd in their own names. It appears that the board holds about ₪1.9m worth of stock. This compares to a market capitalization of ₪1.6b. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

With a 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Menivim - The New Reit. 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 Menivim - The New Reit better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Menivim - The New Reit you should be aware of, and 1 of them is a bit concerning.

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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