What types of investors most own First International Bank of Israel Ltd (TLV: FIBI)?


If you want to know who really controls First International Bank of Israel Ltd (TLV: FIBI) then you will need to look at the makeup of its share register. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. We also tend to see a decrease in insider ownership in companies that were previously owned by the state.

The First International Bank of Israel is a pretty big company. It has a market capitalization of ₪ 12b. Normally, institutions would own a significant share of a company of this size. Looking at our data on ownership groups (below), it appears that institutions own shares in the company. Let’s take a closer look at what different types of shareholders can tell us about First International Bank of Israel.

Check out our latest analysis for First International Bank of Israel

TASE: Distribution of FIBI ownership on September 24, 2021

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

Institutional investors generally 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.

As you can see, institutional investors own a significant stake in First International Bank of Israel. This implies that analysts working for these institutions have reviewed the title and appreciate it. But like everyone else, they could be wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out the path of past earnings for the First International Bank of Israel (below). Of course, keep in mind that there are other factors to consider as well.

profit and revenue growth
TASE: FIBI Profit and Revenue Growth September 24, 2021

The First International Bank of Israel is not owned by hedge funds. Our data shows that FIBI Holdings Ltd is the largest shareholder with 48% of the shares outstanding. The second and third shareholders are Meitav DASH Investments Ltd and Altshuler Shaham Ltd., with an equal number of shares in their name at 5.0%.

A more detailed study of the register of shareholders showed us that 2 of the main shareholders hold a considerable share of the ownership of the company, through their 53% stake.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. As far as I know, there is no analyst coverage of the company, so it probably goes under the radar.

Insider ownership of Israel’s leading international bank

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.

Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our data suggests that insiders own less than 1% of First International Bank of Israel Ltd in their own name. It’s a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case, insiders own 2.7 million yen of shares. It’s always good to see at least one insider property, but it may be worth checking out if those insiders have sold.

General public property

The general public, with a 19% stake in the company, will not be easily ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.

Public enterprise ownership

State-owned companies currently own 48% of the shares of the First International Bank of Israel. It’s hard to say for sure, but it suggests that they have intertwined business interests. This can be a strategic issue, so it’s worth watching this space for changes in ownership.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand the First International Bank of Israel, there are many other factors that we need to consider. For example, we discovered 1 warning sign for Israel’s first international bank which you should know before investing here.

Sure this might not be the best stock to buy. Therefore, you may want to see our free set of interesting prospects benefiting from a favorable financial situation.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

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