Public companies that control much of Sapiens International Corporation NV (NASDAQ:SPNS) as well as institutions must be dismayed after last week’s 4.2% drop

0

To get an idea of ​​who actually controls Sapiens International Corporation NV (NASDAQ: SPNS), it is important to understand the ownership structure of the company. With 44% of the capital, public companies hold the maximum shares in the company. In other words, the group faces the maximum upside potential (or downside risk).

After a 4.2% drop in stock prices last week, public companies suffered the most losses, but institutions that hold 31% of shares were also affected.

Let’s dive deeper into each Sapiens International owner type, starting with the table below.

Discover our latest analysis for Sapiens International

NasdaqGS: distribution of ownership of SPNS on May 25, 2022

What does institutional ownership tell us about Sapiens International?

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 see that Sapiens International has institutional investors; and they own a good part of the shares of the company. This may indicate that the company has some degree of credibility in the investment community. However, it is better to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it is worth checking out the Sapiens International earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqGS: SPNS Earnings and Revenue Growth May 25, 2022

Sapiens International does not belong to hedge funds. Looking at our data, we can see that the largest shareholder is Formula Systems (1985) Ltd. with 44% of the shares outstanding. In comparison, the second and third shareholders hold approximately 5.7% and 2.7% of the shares. Additionally, the company’s CEO, Roni Al-Dor, directly owns 0.8% of the total shares outstanding.

A more detailed study of the shareholder register showed us that 3 of the main shareholders hold a considerable stake in the company, via their 52% stake.

Institutional ownership research is a good way to assess and filter a stock’s expected performance. The same can be obtained by studying the feelings of the analyst. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.

Sapiens International Insider Ownership

The definition of an insider may differ slightly from country to country, but board members still matter. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

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 most recent data indicates that insiders own less than 1% of Sapiens International Corporation NV. This is a fairly large company, so it would be possible for board members to hold a significant stake in the company, without holding much proportional interest. In this case, they own about $9.8 million worth of stock (at current prices). It’s always good to see at least some insider ownership, but it might be worth checking to see if those insiders have sold.

General public property

The general public, including retail investors, owns 24% of the company’s shares and therefore cannot be easily ignored. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Ownership of a public company

Public companies currently own 44% of the shares of Sapiens International. We cannot be sure, but it is quite possible that it is a strategic issue. Businesses can be similar or work together.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Sapiens International, we need to consider many other factors. Know that Sapiens International shows 1 warning sign in our investment analysis you should know…

If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.

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.

Share.

Comments are closed.