The ownership structure of Terminal X Online Ltd. (TLV:TRX) could she tell us something useful?
Major shareholder groups of Terminal X Online Ltd. (TLV:TRX) have power over the company. Institutions often own shares in larger companies, and we expect to see insiders owning a noticeable percentage of smaller ones. Warren Buffett said he likes “a business with enduring competitive advantages that is led by capable, owner-oriented people.” So it’s nice to see some insider ownership, as it may suggest management is owner-driven.
Terminal X Online is a small company with a market capitalization of ₪957 million, so it may still fly under the radar of many institutional investors. Our analysis of company ownership, below, shows that institutions are not really present in the share register. Let’s dig deeper into each owner type, to learn more about Terminal X Online.
Check out our latest analysis for Terminal X Online
What does institutional ownership tell us about Terminal X Online?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Less than 5% of Terminal X Online is owned by institutional investors. This suggests that some funds have the company in their sights, but many have yet to buy shares. If the company strengthens from here, we could see a situation where more institutions are eager to buy. We sometimes see a rise in the stock price when a few large institutions want to buy a certain stock at the same time. Earnings and revenue history, which you can see below, could be helpful in determining whether more institutional investors will want the stock. Of course, there are also many other factors to consider.
We note that hedge funds have no significant investment in Terminal X Online. Our data shows that Fox-Wizel Ltd. is the main shareholder with 52% of the outstanding shares. This implies that they have majority control over the future of the company. In comparison, the second and third shareholders hold around 10% and 10% of the shares.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. Our information suggests there is no analyst coverage of the stock, so it is likely little known.
Insider Ownership of Terminal X Online
The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.
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.
It appears that insiders own a large share of Terminal X Online Ltd. It’s great to see insiders so invested in the company. It might be worth checking to see if these insiders have bought recently.
General public property
With a 15% stake, the general public, consisting mostly of individual investors, has some influence over Terminal X Online. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
Private equity ownership
With a 10% stake, private equity firms are able to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private capital sticking around for the long haul, but generally they have a shorter investment horizon and, as the name suggests, don’t invest heavily in public companies. After a while, they may look to sell and redeploy capital elsewhere.
Private Company Ownership
It seems that private companies hold 7.5% of the shares of Terminal X Online. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.
Ownership of a public company
It can be seen that public companies hold 52% of Terminal X Online shares on issuance. It may be a strategic interest and both companies may have related business interests. They may have separated. This exploitation probably deserves further investigation.
It is always useful to think about the different groups that own shares in a company. But to better understand Terminal X Online, we need to consider many other factors. Take for example the ubiquitous specter of investment risk. We have identified 3 warning signs with Terminal X Online, and understanding them should be part of your investment process.
If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of interesting companies, supported by solid financial data.
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.
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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.