With 57% ownership in Holmes Place International Ltd (TLV:HLMS), institutional investors have a lot riding on the business

Explore Holmes Place International's Fair Values from the Community and select yours

Key Insights

• Institutions' substantial holdings in Holmes Place International implies that they have significant influence over the company's share price
• The top 5 shareholders own 59% of the company
• Insider ownership in Holmes Place International is 13%

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A look at the shareholders of Holmes Place International Ltd (TLV:HLMS) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 57% ownership. 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 ₪67m in market cap last week. The one-year return on investment is currently 78% and last week's gain would have been more than welcomed.

Let's take a closer look to see what the different types of shareholders can tell us about Holmes Place International.

Check out our latest analysis for Holmes Place International

What Does The Institutional Ownership Tell Us About Holmes Place International?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Holmes Place International does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Holmes Place International's historic earnings and revenue below, but keep in mind there's always more to the story.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Holmes Place International. Our data shows that Intergemel Provident Funds and Pension Ltd. is the largest shareholder with 14% of shares outstanding. In comparison, the second and third largest shareholders hold about 12% and 11% of the stock.

On looking further, we found that 59% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Holmes Place International

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 information suggests that insiders maintain a significant holding in Holmes Place International Ltd. Insiders own ₪91m worth of shares in the ₪707m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 29% stake in the company, and hence can't easily be ignored. 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 Holmes Place International better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Holmes Place International you should be aware of.

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.