Private equity firms are among the top shareholders of Meitav DASH Investments Ltd (TLV:MTDS) and have been hit after prices fell 10% last week

0

To get an idea of ​​who really controls Meitav DASH Investments Ltd (TLV:MTDS), it is important to understand the ownership structure of the company. We can see that private equity firms hold the lion’s share of the business with 29% ownership. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

And last week, private equity firms suffered the biggest losses as the stock fell 10%.

Let’s dig deeper into each type of owner in Meitav DASH Investments, starting with the table below.

Check out our latest analysis for Meitav DASH Investments

TASE: MTDS Ownership Breakdown August 19, 2022

What does institutional ownership tell us about Meitav DASH investments?

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 Meitav DASH Investments 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. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking the past earnings trajectory of Meitav DASH Investments (below). Of course, keep in mind that there are other factors to consider as well.

earnings-and-revenue-growth
TASE: MTDS Earnings and Revenue Growth August 19, 2022

We note that hedge funds have no significant investment in Meitav DASH Investments. Looking at our data, we can see that the major shareholder is BRM Group with 29% of the outstanding shares. Maya Holdings (Ye’elim) Ltd. is the second largest shareholder with 28% of the ordinary shares, and The Phoenix Excellence Pension & Provident Fund Ltd. owns approximately 5.7% of the shares of the company. Additionally, we found that Ilan Raviv, the CEO, owns 1.5% of the shares allocated in his name.

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.

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 Meitav DASH Investments

The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

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 most recent data indicates that insiders hold shares in Meitav DASH Investments Ltd. In their own name, insiders hold 57 million shares in the ₪1.1 billion company. Some would say this shows the alignment of interests between shareholders and the board. But it might be worth checking to see if these insiders have sold.

General public property

The general public, who are usually individual investors, hold a 24% stake in Meitav DASH Investments. 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.

Private equity ownership

With a 29% stake, private equity firms could influence the board of Meitav DASH Investments. This might appeal to some, because private equity is sometimes an activist who holds management accountable. But other times, the private equity sells off, after taking the company public.

Private Company Ownership

Our data indicates that private companies hold 28% of the shares of society. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. For example, we found 3 warning signs for Meitav DASH Investments (2 are a bit of a concern!) that you should be aware of before investing here.

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 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.

Calculation of discounted cash flows for each share

Simply Wall St performs a detailed calculation of discounted cash flow every 6 hours for every stock in the market, so if you want to find the intrinsic value of any company, just search here. It’s free.

Share.

Comments are closed.