Key Insights

Insiders appear to have a vested interest in Senvest Capital's growth, as seen by their sizeable ownership A total of 2 investors have a majority stake in the company with 58% ownership Recent sales by insiders

Every investor in Senvest Capital Inc. (TSE:SEC) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 62% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Despite selling some shares recently, insiders control a good portion of the company's stock.

Let's delve deeper into each type of owner of Senvest Capital, beginning with the chart below.

View our latest analysis for Senvest Capital  TSX:SEC Ownership Breakdown December 26th 2023

What Does The Lack Of Institutional Ownership Tell Us About Senvest Capital?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Senvest Capital's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely. TSX:SEC Earnings and Revenue Growth December 26th 2023

We note that hedge funds don't have a meaningful investment in Senvest Capital. With a 47% stake, CEO Victor Mashaal is the largest shareholder. Richard Mashaal is the second largest shareholder owning 11% of common stock, and George Malikotsis holds about 2.9% of the company stock. Interestingly, the second-largest shareholder, Richard Mashaal is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.



After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Senvest Capital

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.

It seems that insiders own more than half the Senvest Capital Inc. stock. This gives them a lot of power. That means they own CA$477m worth of shares in the CA$766m company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 38% stake in the company, and hence can't easily be ignored. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Senvest Capital better, we need to consider many other factors. Be aware that Senvest Capital is showing  1 warning sign in our investment analysis , you should know about...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.