A wave of quiet confidence on the stock exchange: Executives, institutional investors, and controlling shareholders signal stocks are too cheap

While the market drifts, a series of strategic moves across public companies reveals a different picture: from aggressive buyback programs to tender offers for delisting and institutional investments, those who know best believe in the value.

A clear trend of confidence-building is taking shape on the Tel Aviv Stock Exchange. Companies like Clal Insurance Enterprises Holdings, Bank Leumi Le- Israel B.M, and G City are accelerating buyback programs; Alfred Akirov is working to delist Alrov Properties & Lodgings; Meitav investment house is becoming a substantial shareholder in Shikun & Binui; and Yohananof is separating its real estate assets to unlock value. At the same time, companies like P.C.B. Technologies and Next Vision Stabilized Systems report massive contracts signaling business strength. The cumulative picture: "smart money" believes the market is missing the potential.

While investors try to figure out the general market direction, a quiet yet significant wave of expressions of confidence is taking place beneath the surface by those who know the companies from the inside. A series of filings from recent days paints a clear picture: executives, controlling shareholders, and institutional entities believe many assets are trading at a discount, and they are not hesitating to use the tools at their disposal to seize the opportunity.

The first front: Buybacks intensify

The most direct sign of management confidence is a share buyback program. The trend, which is gaining momentum, now includes players from diverse sectors. Clal Insurance Enterprises Holdings is implementing its program at a dizzying pace and has already completed over 77% of it. Bank Leumi Le- Israel B.M is continuing its massive program, and tech firm Qualitau has crossed the 50% execution threshold. G City is also active in the arena, taking a dual step: it is buying back not only its own shares but also bonds, in a move signaling confidence in its ability to service debt and in its attractiveness at current market prices. These moves not only support the share price, but above all send a sharp and clear message: from our perspective, the stock is cheap.

The second front: From confidence to full takeover

One step further from a buyback is the attempt to delist a company. The move by Alfred Akirov, controlling shareholder of Alrov Properties & Lodgings, to submit a full tender offer for public shares is the ultimate expression of confidence. Akirov is essentially telling the market: "You are not valuing my assets correctly, and therefore I prefer to hold 100% of them myself." This is a move taking advantage of what the controlling shareholder perceives as a significant pricing distortion, joining the trend of company delistings from the stock exchange in recent years.

The third front: The stamp of approval from institutional and strategic players

Confidence is not the sole domain of controlling shareholders. When an institutional entity of the scale of Meitav acquires shares in Shikun & Binui to the tune of approximately ₪15 million and becomes a substantial shareholder, it is a powerful signal. Unlike a company manager, Meitav is a professional "outsider" whose voting with its feet (or rather, with savers' funds) constitutes an external and independent expression of confidence in the infrastructure giant's potential.

Simultaneously, we are seeing strategic moves aimed at unlocking value that the market is missing. The decision by the Yohananof chain to separate its real estate assets, valued at approximately ₪1.1 billion, into a dedicated subsidiary, is a prime example. The move is designed to isolate the stable income-producing real estate activity from the competitive retail activity, making the hidden value in the assets more transparent and clear to investors.

The basis for certainty: Real business strength

It is important to emphasize that this wave of confidence is not based solely on financial perceptions. It rests on strong business performance. P.C.B. Technologies's strategic agreement with an American aviation giant valued at $38 million, and the significant follow-on order received by Next Vision Stabilized Systems from an existing customer, are proof on the ground. These contracts, reflecting customer satisfaction and technological advantage, are the fuel feeding the confidence of managements and major investors.

Bottom line, the combination of buybacks, tender offers, institutional investments, structural changes, and significant operational contracts creates a coherent narrative. It tells of a growing gap between how the market prices companies and how those closest to them assess their true worth. For the investor, tracking the actions of "smart money" can be a highly valuable compass in spotting the next opportunities.