What does the ownership structure of Fattal Holdings (1998) Ltd (TLV:FTAL) look like?

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A look at the shareholders of Fattal Holdings (1998) Ltd (TLV:FTAL) can tell us which group is the most powerful. Big companies usually have institutions as shareholders, and we usually see insiders owning shares in small companies. Warren Buffett said he likes “a business with enduring competitive advantages that is led by capable, owner-oriented people.” So it’s nice to see some insider ownership, as it may suggest management is owner-driven.

Fattal Holdings (1998) isn’t huge, but it’s not particularly small either. It has a market capitalization of ₪6.5 billion, which means it generally expects to see some institutions listed on the share register. Looking at our ownership group data (below), it appears that institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Fattal Holdings (1998).

Check out our latest analysis for Fattal Holdings (1998)

TASE: FTAL Ownership Breakdown August 12, 2022

What does institutional ownership tell us about Fattal Holdings (1998)?

Many institutions measure their performance against an index that approximates the local market. They therefore generally pay more attention to companies that are included in the main indices.

As you can see, institutional investors own a sizable share of Fattal Holdings (1998). This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes 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 Fattal Holdings (1998) historic earnings and revenue below, but keep in mind there’s always more to the story.

earnings-and-revenue-growth
TASE:FTAL Earnings and Revenue Growth August 12, 2022

Hedge funds don’t have a lot of shares in Fattal Holdings (1998). With a 62% stake, CEO David Fattal is the largest shareholder. With such a large stake, we infer that they have significant control over the future of the company. It is generally considered a good sign when insiders hold a significant number of shares in the company, and in this case, we are happy to see a company insider with such skin in the game. Migdal Mutual Funds Ltd. is the second largest shareholder with 12% of common shares, and The Phoenix Excellence Pension & Provident Fund Ltd. owns approximately 4.3% of the company’s shares.

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. As far as we can tell, there’s no analyst coverage of the company, so it’s probably flying under the radar.

Insider ownership of Fattal Holdings (1998)

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.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Our information suggests that insiders own more than half of Fattal Holdings (1998) Ltd. This gives them effective control of the company. Insiders own 4.1 billion shares in the £6.5 billion company. It’s extraordinary ! Good to see this level of investment. You can check here if these insiders have sold any of their shares.

General public property

The general public, including retail investors, owns 15% of the company’s capital and therefore cannot be easily ignored. While that size of ownership might not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Next steps:

I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. Take for example the ubiquitous specter of investment risk. We have identified 2 warning signs with Fattal Holdings (1998) (at least 1 that can’t be ignored), and understanding them should be part of your investment process.

If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of interesting companies, supported by solid financial data.

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 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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