Stock Analysis

What Type Of Shareholders Make Up Menivim - The New Reit Ltd's (TLV:MNRT) Share Registry?

TASE:MNRT
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The big shareholder groups in Menivim - The New Reit Ltd (TLV:MNRT) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that have been privatized tend to have low insider ownership.

Menivim - The New Reit is not a large company by global standards. It has a market capitalization of ₪1.1b, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Menivim - The New Reit.

View our latest analysis for Menivim - The New Reit

ownership-breakdown
TASE:MNRT Ownership Breakdown March 16th 2021

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

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.

Menivim - The New Reit already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 March 16th 2021

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Menivim - The New Reit is not owned by hedge funds. Clal Pension And Gemel Ltd is currently the largest shareholder, with 15% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 14% and 9.9%, of the shares outstanding, respectively.

On looking further, we found that 53% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

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 information suggests that Menivim - The New Reit Ltd insiders own under 1% of the company. It appears that the board holds about ₪1.2m worth of stock. This compares to a market capitalization of ₪1.1b. 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 22% ownership, the general public have some degree of sway over Menivim - The New Reit. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

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. For example, we've discovered 3 warning signs for Menivim - The New Reit (1 is a bit unpleasant!) that you should be aware of before investing here.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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. 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.
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