Could The Mivne Real Estate (K.D) Ltd (TLV:MVNE) Ownership Structure Tell Us Something Useful?

If you want to know who really controls Mivne Real Estate (K.D) Ltd (TLV:MVNE), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

Mivne Real Estate (K.D) has a market capitalization of ₪6.8b, so we would expect some institutional investors to have noticed the stock. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about Mivne Real Estate (K.D).

See our latest analysis for Mivne Real Estate (K.D)

What Does The Institutional Ownership Tell Us About Mivne Real Estate (K.D)?

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.

Mivne Real Estate (K.D) 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 Mivne Real Estate (K.D), (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Mivne Real Estate (K.D). Looking at our data, we can see that the largest shareholder is David Fuhrer with 17% of shares outstanding. Menora Mivtachim Pensions & Gemel Ltd. is the second largest shareholder owning 9.5% of common stock, and The Phoenix Pension and Provident Fund Ltd. holds about 5.7% of the company stock.

On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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 Mivne Real Estate (K.D)

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.

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 insiders maintain a significant holding in Mivne Real Estate (K.D) Ltd. It is very interesting to see that insiders have a meaningful ₪1.2b stake in this ₪6.8b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public holds a 37% stake in Mivne Real Estate (K.D). 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 3 warning signs for Mivne Real Estate (K.D) you should be aware of, and 1 of them doesn't sit too well with us.

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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