-
The considerable ownership of public companies in Magic Software Enterprises indicates that they jointly have more control in management and business strategy
-
In total, 2 investors have a majority stake in the company with 58% ownership
-
Institutions have 30% of the Magic Software companies
To get an idea of those who really have control over Magic Software Enterprises Ltd. (Nasdaq: MGIC), it is important to understand the ownership structure of the company. With an interest of 47%, public companies have the maximum shares in the company. In other words, the group is to win the most (or to lose the most) of their investment in the company.
Institutions, on the other hand, account for 30% of the company’s shareholders. Institutions will often have shares in larger companies, and we expect insiders to have a noticeable percentage of the smaller property.
In the graph below we zoom in on the various ownership groups of Magic Software Enterprises.
View our latest analysis for Magic Software Enterprises
Institutional investors often compare their own returns with the return of a generally followed index. So in general they are considering buying larger companies that are included in the relevant benchmark index.
Magic Software Enterprises already has institutions in the stock register. They indeed have a respectable interest in the company. This may indicate that the company has a certain degree of credibility in the investment community. However, it is best to be on their care to rely on the supposed validation associated with institutional investors. They too are sometimes wrong. It is not uncommon to see a large share price fall as two large institutional investors at the same time. It is therefore worth checking the earlier profit process of Magic Software Enterprises (below). Naturally, keep in mind that there are other factors to consider.
We note that hedge funds do not have meaningful investment in magical software companies. Formula Systems (1985) Ltd. is currently the largest shareholder, with 47% of the outstanding shares. For context, the second largest shareholder has approximately 12% of the outstanding shares, followed by a 7.0% owned by the third largest shareholder.
A more detailed study of the shareholders’ register has shown us that 2 of the best shareholders have a considerable ownership of the company, through their interest of 58%.
Although studying institutional ownership for a company can add value to your research, it is also a good practice to investigate analyst recommendations to understand the expected performance of a share. Although there is a coverage of the analysts, the company is probably not covered on a large scale. So it could get more attention, on the track.
Although the precise definition of an insider can be subjective, almost everyone regards board members as insiders. The business management answers to the board of directors and the latter must represent the interests of shareholders. It is striking that managers at the top level are sometimes on the board itself.
Most consider Insider -property as a positive one because it can indicate that the board is well tailored to other shareholders. On some occasions, however, too much power is concentrated within this group.
Our most recent data indicates that insiders have less than 1% of Magic Software Enterprises LTD. It seems that the board has around US $ 2.3 million in shares. This can be compared with a market capitalization of US $ 584 million. Many investors in smaller companies prefer to see the board invested heavily. You can click here to see if those insiders have bought or sell.
With a 23% owned, the general public, usually consisting of individual investors, has a certain degree of influence on magic software companies. Although this size of the ownership may not be sufficient to influence a policy decision in their favor, they can still have a collective impact on company policy.
Public companies currently have 47% of the shares of Magic Software Enterprises. It is difficult to say for sure, but this suggests that they have entangled business interests. This can be a strategic interest, so it is worth viewing this space for changes owned.
It is always worth thinking about the different groups that have shares in a company. But to better understand magic software companies, we have to consider many other factors. An example: we have seen 1 Warning signal for magic software companies You must be aware of.
But finally It’s the futureNot the past, that will determine how well the owners of this company will do. That is why we think it is advisable to take a look at this free report that shows whether analysts predict a better future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12 -month period that ends on the last date of the month that the financial statements are dated. This may not be consistent with figures from the annual annual report.
Feedback on this article? Worried about the content? Contact us With us immediately. As an alternative e-mail editorial team (AT) Easlewallst.com.
This article by Simply Wall St is generally in nature. We comment based on historical data and analyst forecasts that only use an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell shares and does not take your objectives or your financial situation into account. We strive to bring you in the long term -targeted analysis, powered by fundamental data. Note that our analysis may not take into account the latest price -sensitive company announcements or qualitative material. Simply Wall St has no position in the aforementioned stocks.
