FIBI Holdings Ltd (TLV:FIBIH) share price fell 4.8% last week; individual investors would not be happy

A look at the shareholders of FIBI Holdings Ltd (TLV:FIBIH) can tell us which group is the most powerful. The group holding the largest number of shares in the company, around 33% to be precise, are individual investors. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).

While individual investor holdings took a hit after prices fell 4.8% last week, insiders with their 29% also suffered.

Let’s dive deeper into each type of FIBI Holdings owner, starting with the table below.

See our latest analysis for FIBI Holdings

TASE: FIBIH Property Breakdown May 3, 2022

What does institutional ownership tell us about FIBI Holdings?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

FIBI Holdings already has institutions on the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see FIBI Holdings’ historic earnings and revenue below, but keep in mind there’s always more to the story.

earnings-and-revenue-growth
TASE: FIBIH Earnings and Revenue Growth May 3, 2022

We note that hedge funds have no significant investment in FIBI Holdings. Zadik Bino is currently the largest shareholder, with 29% of shares outstanding. The second and third largest shareholders are Dolphin Energies Ltd. and Sing Acquisitions Pte. Ltd., with an equal number of shares in their name at 12%.

After digging a little deeper, we found that the top 3 shareholders collectively control more than half of the company’s stock, implying that they have considerable power to influence company decisions.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. As far as we can tell, there’s no analyst coverage of the company, so it’s probably flying under the radar.

FIBI Holdings Insider Ownership

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Our information suggests that insiders hold a significant stake in FIBI Holdings Ltd. Insiders hold 1.5 billion shares of the company at 5.3 billion. It is quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if these insiders have been buying or selling.

General public property

The general public, including retail investors, owns 33% of the company’s shares and therefore cannot be easily ignored. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Private Company Ownership

Our data indicates that private companies own 23% of the company’s shares. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Be aware that FIBI Holdings displays 1 warning sign in our investment analysis you should know…

Sure this may not be the best stock to buy. So take a look at this free free list of interesting companies.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Karen J. Nelson