With 34% ownership in NextVison Stabilized Systems, Ltd. (TLV:NXSN), institutional investors have a lot riding on the business

Key Insights

• Significantly high institutional ownership implies NextVison Stabilized Systems' stock price is sensitive to their trading actions
• The top 6 shareholders own 51% of the company
• Insider ownership in NextVison Stabilized Systems is 34%

Every investor in NextVison Stabilized Systems, Ltd. (TLV:NXSN) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 34% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Last week’s 9.6% gain means that institutional investors were on the positive end of the spectrum even as the company has shown strong longer-term trends. One-year return to shareholders is currently 340% and last week’s gain was the icing on the cake.

Let's delve deeper into each type of owner of NextVison Stabilized Systems, beginning with the chart below.

View our latest analysis for NextVison Stabilized Systems

What Does The Institutional Ownership Tell Us About NextVison 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 NextVison 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 NextVison Stabilized Systems, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in NextVison Stabilized Systems. Our data shows that Yosef Sandler is the largest shareholder with 11% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.7% and 9.2% of the stock. Boris Kipnis, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. In addition, we found that Michael Grosman, the CEO has 1.3% of the shares allocated to their name.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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

Insider Ownership Of NextVison Stabilized Systems

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. 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 NextVison Stabilized Systems, Ltd.. It has a market capitalization of just ₪3.0b, and insiders have ₪1.0b worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 26% stake in the company, and hence can't easily be ignored. 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

It seems that Private Companies own 5.8%, of the NextVison Stabilized Systems stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

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.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

Of course this may not be the best stock to buy. So take a peek at this free 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.

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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.