What Type Of Shareholders Own The Most Number of Gilat Satellite Networks Ltd. (NASDAQ:GILT) Shares?

By
Simply Wall St
Published
April 12, 2022
NasdaqGS:GILT
Source: Shutterstock

A look at the shareholders of Gilat Satellite Networks Ltd. (NASDAQ:GILT) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that have been privatized tend to have low insider ownership.

Gilat Satellite Networks is not a large company by global standards. It has a market capitalization of US$456m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about Gilat Satellite Networks.

View our latest analysis for Gilat Satellite Networks

ownership-breakdown
NasdaqGS:GILT Ownership Breakdown April 12th 2022

What Does The Institutional Ownership Tell Us About Gilat Satellite Networks?

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.

Gilat Satellite Networks 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Gilat Satellite Networks' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqGS:GILT Earnings and Revenue Growth April 12th 2022

Gilat Satellite Networks is not owned by hedge funds. The company's largest shareholder is First Israel Mezzanine Investors Ltd., with ownership of 9.8%. For context, the second largest shareholder holds about 8.6% of the shares outstanding, followed by an ownership of 5.6% by the third-largest shareholder.

After doing some more digging, we found that the top 25 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Gilat Satellite Networks

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.

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.

Our data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public-- including retail investors -- own 47% 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 Equity Ownership

With a stake of 9.8%, private equity firms could influence the Gilat Satellite Networks board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Gilat Satellite Networks has 1 warning sign we think you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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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