Stock Analysis

Public companies among Delta Israel Brands Ltd's (TLV:DLTI) largest shareholders, saw gain in holdings value after stock jumped 11% last week

TASE:DLTI
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Key Insights

  • The considerable ownership by public companies in Delta Israel Brands indicates that they collectively have a greater say in management and business strategy
  • The largest shareholder of the company is Delta Galil Industries Ltd. with a 80% stake
  • Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

If you want to know who really controls Delta Israel Brands Ltd (TLV:DLTI), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are public companies with 80% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, public companies benefitted the most after the company's market cap rose by ₪160m last week.

In the chart below, we zoom in on the different ownership groups of Delta Israel Brands.

View our latest analysis for Delta Israel Brands

ownership-breakdown
TASE:DLTI Ownership Breakdown May 22nd 2024

What Does The Institutional Ownership Tell Us About Delta Israel Brands?

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.

We can see that Delta Israel Brands 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. 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 Delta Israel Brands' historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
TASE:DLTI Earnings and Revenue Growth May 22nd 2024

Delta Israel Brands is not owned by hedge funds. Our data shows that Delta Galil Industries Ltd. is the largest shareholder with 80% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Phoenix Excellence Pension and Provident Ltd. is the second largest shareholder owning 4.2% of common stock, and Migdal Mutual Funds Ltd. holds about 0.7% of the company stock.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Delta Israel Brands

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 cannot confirm that board members are holding shares personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public, who are usually individual investors, hold a 13% stake in Delta Israel Brands. 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.

Public Company Ownership

We can see that public companies hold 80% of the Delta Israel Brands shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Delta Israel Brands better, we need to consider many other factors. For example, we've discovered 1 warning sign for Delta Israel Brands that you should be aware of before investing here.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Delta Israel Brands is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.