If you want to know who actually controls Sapiens International Corporation NV (NASDAQ: SPNS), then you will need to look at the makeup of its share register. We can see that SOEs have the lion’s share of the business with a 44% stake. That is, the group is most likely to benefit the most if the stock rises (or to lose the most if there is a decline).
As a result, public companies collectively scored the highest last week, with the company reaching a market cap of US $ 1.9 billion after a 4.5% gain in the stock.
Let’s dig deeper into each type of owner of Sapiens International, starting with the table below.
Discover our latest analysis for Sapiens International
What does institutional ownership tell us about Sapiens International?
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.
We can see that Sapiens International has institutional investors; and they own a large portion of the company’s stock. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell shares quickly. This risk is higher in a company without a history of growth. You can see Sapiens International’s historical revenue and income below, but keep in mind that there is always more to tell.
Hedge funds don’t have a lot of shares in Sapiens International. Formula Systems (1985) Ltd. is currently the largest shareholder, with 44% of the shares outstanding. With 2.7% and 2.6% of the shares outstanding respectively, The Phoenix Investment and Finances Ltd. and BlackRock, Inc. are the second and third largest shareholders. In addition, the CEO of the company, Roni Al-Dor, directly owns 0.8% of the total shares outstanding.
Looking further, we found that 51% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a say in the decisions of the company.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.
Insider property of Sapiens International
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board.
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 information suggests that insiders of Sapiens International Corporation NV own less than 1% of the company. Keep in mind that this is a large company and insiders own $ 14 million in stock. The absolute value can be more important than the proportional part. It’s good to see board members owning stocks, but it might be worth checking out if those insiders have bought.
General public property
The general public, generally individual investors, hold 28% of the capital of Sapiens International. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
Public enterprise ownership
It can be seen that public companies hold 44% of Sapiens International shares on issue. We cannot be sure, but it is quite possible that it is a strategic issue. Companies can be similar or work together.
It’s always worth thinking about the different groups that own shares in a company. But to better understand Sapiens International, there are many other factors that we need to take into account.
Many find it useful to take an in-depth look at how a business has performed in the past. You can access this detailed graphic past earnings, income and cash flow.
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
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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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.