Australia markets closed
  • ALL ORDS

    7,649.30
    -32.00 (-0.42%)
     
  • ASX 200

    7,342.60
    -27.60 (-0.37%)
     
  • AUD/USD

    0.7262
    -0.0037 (-0.51%)
     
  • OIL

    73.95
    +0.65 (+0.89%)
     
  • GOLD

    1,750.60
    +0.80 (+0.05%)
     
  • BTC-AUD

    58,706.94
    -677.05 (-1.14%)
     
  • CMC Crypto 200

    1,067.20
    -35.86 (-3.25%)
     
  • AUD/EUR

    0.6192
    -0.0018 (-0.30%)
     
  • AUD/NZD

    1.0344
    +0.0031 (+0.30%)
     
  • NZX 50

    13,259.55
    -46.37 (-0.35%)
     
  • NASDAQ

    15,329.68
    +13.10 (+0.09%)
     
  • FTSE

    7,051.48
    -26.87 (-0.38%)
     
  • Dow Jones

    34,798.00
    +33.18 (+0.10%)
     
  • DAX

    15,531.75
    -112.22 (-0.72%)
     
  • Hang Seng

    24,192.16
    -318.82 (-1.30%)
     
  • NIKKEI 225

    30,248.81
    +609.41 (+2.06%)
     

How Much Of Tower Semiconductor Ltd. (NASDAQ:TSEM) Do Institutions Own?

  • Oops!
    Something went wrong.
    Please try again later.
·4-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

The big shareholder groups in Tower Semiconductor Ltd. (NASDAQ:TSEM) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that have been privatized tend to have low insider ownership.

Tower Semiconductor has a market capitalization of US$3.0b, so we would expect some institutional investors to have noticed the stock. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Tower Semiconductor.

View our latest analysis for Tower Semiconductor

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Tower Semiconductor?

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.

We can see that Tower Semiconductor does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Tower Semiconductor, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
earnings-and-revenue-growth

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. It looks like hedge funds own 7.0% of Tower Semiconductor shares. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Wellington Management Group LLP is currently the largest shareholder, with 8.7% of shares outstanding. Senvest Management, LLC is the second largest shareholder owning 7.0% of common stock, and Harel Insurance Investments and Finances Services Ltd, Asset Management Arm holds about 5.5% of the company stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Tower Semiconductor

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

We note our data does not show any board members holding shares, personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public, with a 37% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

This article by Simply Wall St is general in nature. 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.

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

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting