Public companies account for 44% of Sapiens International Corporation N.V.'s (NASDAQ:SPNS) ownership, while institutions account for 36%
Key Insights
-
Significant control over Sapiens International by public companies implies that the general public has more power to influence management and governance-related decisions
-
The top 3 shareholders own 51% of the company
Every investor in Sapiens International Corporation N.V. (NASDAQ:SPNS) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 44% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Institutions, on the other hand, account for 36% of the company's stockholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.
In the chart below, we zoom in on the different ownership groups of Sapiens International.
View our latest analysis for Sapiens International
What Does The Institutional Ownership Tell Us About Sapiens International?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Sapiens International already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Sapiens International, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in Sapiens International. Formula Systems (1985) Ltd. is currently the company's largest shareholder with 44% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.7% and 3.0% of the stock. In addition, we found that Roni Al-Dor, the CEO has 0.7% of the shares allocated to their name.
To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.