Perion Network Ltd. (NASDAQ:PERI) is largely controlled by institutional shareholders who own 63% of the company
In This Article:
Key Insights
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Given the large stake in the stock by institutions, Perion Network's stock price might be vulnerable to their trading decisions
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A total of 22 investors have a majority stake in the company with 50% ownership
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Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
Every investor in Perion Network Ltd. (NASDAQ:PERI) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 63% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
Let's take a closer look to see what the different types of shareholders can tell us about Perion Network.
See our latest analysis for Perion Network
What Does The Institutional Ownership Tell Us About Perion Network?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a fair amount of stake in Perion Network. 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 Perion Network, (below). Of course, keep in mind that there are other factors to consider, too.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Perion Network. Harel Insurance Investments and Finances Services Ltd, Asset Management Arm is currently the largest shareholder, with 10% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.1% and 3.8% of the stock.
A closer look at our ownership figures suggests that the top 22 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.