First International Bank of Israel Ltd’s (TLV:FIBI) 3.3% loss last week hit both individual investors who hold 48% as well as institutions

Every investor in First International Bank of Israel Ltd (TLV:FIBI) should know the most powerful shareholder groups. We can see that public companies hold the lion’s share of the company with 48% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).

While public company holdings were hit after prices fell 3.3% last week, institutions with their 34% holdings also suffered.

In the table below, we zoom in on the different ownership groups of First International Bank of Israel.

Check out our latest analysis for First International Bank of Israel

TASE: FIBI Ownership Breakdown January 20, 2022

What does institutional ownership tell us about the First International Bank of Israel?

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 own a sizeable share of First International Bank of Israel. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it is worth checking out the earnings history of the First International Bank of Israel below. Of course, the future is what really matters.

earnings-and-revenue-growth
TASE: FIBI Earnings and Revenue Growth January 20, 2022

Hedge funds don’t have a lot of shares in First International Bank of Israel. The company’s largest shareholder is FIBI Holdings Ltd with a 48% stake. Meanwhile, the second and third largest shareholders hold 5.4% and 5.0% of the outstanding shares respectively.

To make our study more interesting, we found that the top 2 shareholders hold a majority stake in the company, which means they are powerful enough to influence company decisions.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. Our information suggests there is no analyst coverage of the stock, so it is likely little known.

Insider ownership of First International Bank of Israel

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. 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.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our data suggests that insiders hold less than 1% of First International Bank of Israel Ltd in their own name. It’s a big company, so even a small proportionate interest can create alignment between the board and shareholders. In this case, insiders own 3.1 million shares. It’s always good to see at least some insider ownership, but it might be worth checking to see if those insiders have sold.

General public property

The general public, who are usually individual investors, hold a 17% stake in First International Bank of Israel. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Ownership of a public company

It seems to us that public companies own 48% of the First International Bank of Israel. It’s hard to say for sure, but it suggests they have intertwined business interests. This could be a strategic stake, so it’s worth monitoring this space for ownership changes.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand the First International Bank of Israel, we need to consider many other factors. Be aware that First International Bank of Israel shows 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.

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