Majority Institutional Stake in InMode Ltd. (INMD) Could Impact Stock Movements

AinvestSunday, Jun 30, 2024 10:12 am ET
1min read

InMode Ltd. (NASDAQ:INMD) sees 67% institutional ownership, with major stakeholders including BlackRock, Inc. and CEO Moshe Mizrahy. This indicates the potential impact of institutional trading decisions on the stock price. The company's ownership structure is dominated by institutional investors, with no single individual holding a majority interest. Analysis of institutional holdings and analyst forecasts can help inform investment decisions.


InMode Ltd. (NASDAQ:INMD), a leading medical device company with a market capitalization of $3.1 billion [1], boasts a notable institutional investor base, accounting for over 67% of its outstanding shares [1]. With major stakeholders such as BlackRock, Inc. [2], and CEO Moshe Mizrahy [1], institutional trading decisions could significantly impact the company's stock price.

Institutional investors often measure their performance against benchmarks and consider adding stocks to major indices [1]. InMode's inclusion in various indices might have contributed to its attractiveness to institutional investors. As of August 15, 2022, the top five institutional investors owned approximately 36% of the company's shares [1].

Despite institutional investors' substantial stake, it's crucial to recognize that their decisions can result in substantial price movements. For instance, if two large institutional investors decide to sell their holdings simultaneously, it could potentially cause a significant drop in the stock price.

Moreover, with institutions holding the majority of shares, the board likely pays close attention to their preferences [1]. Notably, hedge funds have minimal investment in InMode [1]. As of August 15, 2022, the largest shareholder, Robert Mulholland, owned 9.8% of the shares, followed by Michael Kreindel, who holds a 4.2% stake and serves as the Chief Technology Officer [1]. CEO Moshe Mizrahy owns a considerable amount of shares as well [1].

Institutional holdings and analyst forecasts can offer valuable insights into investment decisions for potential investors. As of August 15, 2022, InMode reported strong earnings and revenue growth [1], adding credibility to the company's potential.

Sources:

1. https://www.nasdaq.com/articles/is-inmode-ltd.s-nasdaq:inmd-shareholder-ownership-skewed-towards-insiders
2. https://www.nasdaq.com/market-activity/stocks/inmd/institutional-holders

[Please note that the above article is a fictional creation for the purpose of this exercise and should not be considered financial advice. Always conduct your own research and consult with a financial advisor before making investment decisions.]