Both private companies who control a good portion of Malam - Team Ltd (TLV:MLTM) along with institutions must be dismayed after last week's 6.6% decrease

By
Simply Wall St
Published
January 25, 2022
TASE:MLTM
Source: Shutterstock

A look at the shareholders of Malam - Team Ltd (TLV:MLTM) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 56% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While institutions, who own 17% shares weren’t spared from last week’s ₪160m market cap drop, private companies as a group suffered the maximum losses

Let's delve deeper into each type of owner of Malam - Team, beginning with the chart below.

Check out our latest analysis for Malam - Team

ownership-breakdown
TASE:MLTM Ownership Breakdown January 25th 2022

What Does The Institutional Ownership Tell Us About Malam - Team?

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.

Malam - Team 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 Malam - Team, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
TASE:MLTM Earnings and Revenue Growth January 25th 2022

Malam - Team is not owned by hedge funds. The company's largest shareholder is Barzeverin Corporation Ltd, with ownership of 56%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 14% and 9.8% of the shares outstanding respectively, Shlomo Eisenberg and The Phoenix Excellence Pension & Provident Fund Ltd. are the second and third largest shareholders.

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. 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 Malam - Team

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of Malam - Team Ltd. It has a market capitalization of just ₪2.3b, and insiders have ₪328m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 13% stake in Malam - Team. 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.

Private Company Ownership

Our data indicates that Private Companies hold 56%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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 1 warning sign for Malam - Team you should be aware of.

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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.