Public companies account for 48% of First International Bank of Israel Ltd (TLV:FIBI) ownership, while individual investors account for 31%

If you want to know who actually controls First International Bank of Israel Ltd (TLV:FIBI), then you will need to look at the composition of its share register. With 48% of the capital, public companies hold the maximum shares in the company. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).

Individual investors, meanwhile, represent 31% of the company’s shareholders.

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 Property Breakdown May 23, 2022

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

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

We can see that the First International Bank of Israel has institutional investors; and they own a good part of the shares of 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 First International Bank of Israel’s historic earnings and revenue below, but keep in mind there’s always more to the story.

earnings-and-revenue-growth
TASE: FIBI Earnings and Revenue Growth May 23, 2022

The First International Bank of Israel is not owned by hedge funds. FIBI Holdings Ltd is currently the company’s largest shareholder with 48% of the outstanding shares. Harel Pensions and Gemel Ltd. is the second largest shareholder with 3.6% of the common shares, and The Phoenix Investment and Finances Ltd. owns approximately 2.6% of the company’s shares.

After digging a little deeper, we found that the 2 major shareholders collectively control more than half of the company’s shares, 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. We don’t see any analyst coverage of the stock at this time, so the company is unlikely to be widely held.

Insider ownership of First International Bank of Israel

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.

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 information suggests that insiders of First International Bank of Israel Ltd own less than 1% of the company. Keep in mind that this is a big company and insiders own 2.9 million shares. The absolute value can be more important than the proportional part. It’s good to see board members owning stock, but it can be helpful to check whether those insiders have bought.

General public property

With a 31% stake, the general public, consisting mostly of individual investors, has some influence over First International Bank of Israel. 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.

Ownership of a public company

It seems to us that public companies own 48% of the First International Bank of Israel. It may be a strategic interest and both companies may have related business interests. They may have separated. This exploitation probably deserves further investigation.

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. Take risks for example – the First International Bank of Israel has 1 warning sign we think you should know.

Sure, you might find a fantastic investment by looking elsewhere. So take a look at this 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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