Institutional owners may ignore NextVision Stabilized Systems, Ltd.'s (TLV:NXSN) recent ₪468m market cap decline as longer-term profits stay in the green

Key Insights

• Institutions' substantial holdings in NextVision Stabilized Systems implies that they have significant influence over the company's share price
• A total of 9 investors have a majority stake in the company with 51% ownership
• 29% of NextVision Stabilized Systems is held by insiders

If you want to know who really controls NextVision Stabilized Systems, Ltd. (TLV:NXSN), 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 institutions with 42% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Institutional investors was the group most impacted after the company's market cap fell to ₪5.8b last week. However, the 77% one-year returns may have helped alleviate their overall losses. We would assume however, that they would be on the lookout for weakness in the future.

Let's take a closer look to see what the different types of shareholders can tell us about NextVision Stabilized Systems.

View our latest analysis for NextVision Stabilized Systems

What Does The Institutional Ownership Tell Us About NextVision Stabilized Systems?

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.

As you can see, institutional investors have a fair amount of stake in NextVision Stabilized Systems. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 NextVision Stabilized Systems, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in NextVision Stabilized Systems. Our data shows that Yosef Sandler is the largest shareholder with 9.3% of shares outstanding. With 8.6% and 7.4% of the shares outstanding respectively, Boris Kipnis and Meitav Investment House Ltd are the second and third largest shareholders. Boris Kipnis, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Additionally, the company's CEO Michael Grosman directly holds 1.3% of the total shares outstanding.

We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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

Insider Ownership Of NextVision Stabilized Systems

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.

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 NextVision Stabilized Systems, Ltd.. Insiders own ₪1.7b worth of shares in the ₪5.8b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 29% stake in NextVision Stabilized Systems. 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 NextVision Stabilized Systems better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with NextVision Stabilized Systems (at least 1 which is potentially serious) , and understanding them should be part of your investment process.

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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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.