Institutional investors have a lot riding on Altshuler Shaham Finance Ltd (TLV:ALTF) with 59% ownership
Key Insights
- Institutions' substantial holdings in Altshuler Shaham Finance implies that they have significant influence over the company's share price
- The largest shareholder of the company is Altshuler Shaham Ltd. with a 56% stake
- 15% of Altshuler Shaham Finance is held by insiders
A look at the shareholders of Altshuler Shaham Finance Ltd (TLV:ALTF) can tell us which group is most powerful. With 59% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And things are looking up for institutional investors after the company gained ₪128m in market cap last week. One-year return to shareholders is currently 46% and last week’s gain was the icing on the cake.
Let's take a closer look to see what the different types of shareholders can tell us about Altshuler Shaham Finance.
View our latest analysis for Altshuler Shaham Finance
What Does The Institutional Ownership Tell Us About Altshuler Shaham Finance?
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 Altshuler Shaham Finance. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Altshuler Shaham Finance's earnings history below. Of course, the future is what really matters.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don't have a meaningful investment in Altshuler Shaham Finance. Looking at our data, we can see that the largest shareholder is Altshuler Shaham Ltd. with 56% of shares outstanding. This implies that they have majority interest control of the future of the company. With 15% and 0.7% of the shares outstanding respectively, Yair Levinstein and Ayalon Mutual Funds Ltd. are the second and third largest shareholders. Yair Levinstein, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Altshuler Shaham Finance
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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own a reasonable proportion of Altshuler Shaham Finance Ltd. Insiders own ₪194m worth of shares in the ₪1.3b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 26% stake in Altshuler Shaham Finance. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Altshuler Shaham Finance is showing 3 warning signs in our investment analysis , and 1 of those is significant...
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.
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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.