Y.H. Dimri Construction & Development Ltd (TLV:DIMRI) CEO Yigal Dimri’s holdings dropped 3.9% in value as a result of the recent pullback

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Key Insights

If you want to know who really controls Y.H. Dimri Construction & Development Ltd (TLV:DIMRI), then you’ll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 64% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As market cap fell to ₪4.2b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let’s delve deeper into each type of owner of Y.H. Dimri Construction & Development, beginning with the chart below.

See our latest analysis for Y.H. Dimri Construction & Development

ownership-breakdown
TASE:DIMRI Ownership Breakdown January 29th 2023

What Does The Institutional Ownership Tell Us About Y.H. Dimri Construction & Development?

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

As you can see, institutional investors have a fair amount of stake in Y.H. Dimri Construction & Development. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Y.H. Dimri Construction & Development, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
TASE:DIMRI Earnings and Revenue Growth January 29th 2023

Y.H. Dimri Construction & Development is not owned by hedge funds. The company’s CEO Yigal Dimri is the largest shareholder with 64% of shares outstanding. With such a huge stake, we infer that they have significant control of the future of the company. It’s usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we’re glad to see a company insider with such skin in the game. Migdal Mutual Funds Ltd. is the second largest shareholder owning 6.3% of common stock, and Clal Pension And Gemel Ltd holds about 6.1% of the company stock.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. We’re not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Y.H. Dimri Construction & Development

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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

Our most recent data indicates that insiders own the majority of Y.H. Dimri Construction & Development Ltd. This means they can collectively make decisions for the company. Given it has a market cap of ₪4.2b, that means insiders have a whopping ₪2.7b worth of shares in their own names. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Y.H. Dimri Construction & Development. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we’ve spotted with Y.H. Dimri Construction & Development (including 1 which is a bit unpleasant) .

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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

Valuation is complex, but we’re helping make it simple.

Find out whether Y.H. Dimri Construction & Development is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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