ISRS Investment Company Limited (TLV:ISRS) jumped 5.9%.Public companies holding 59% of the shares benefited along with institutions.

key insights

• The significant ownership by listed companies in Isras Investment indicates that they collectively have a greater say in management and business strategy.
• The company’s largest shareholder is Arad Investment & Industrial Development Ltd. with a 59% stake.
• 11% of Isras Investment is owned by insiders

If you want to know who really controls Isras Investment Company Ltd (TLV:ISRS), then you have to look at the makeup of its share registry. We can see that public companies hold the majority, with 59% of his shares. That is, if the stock price rises, the group will gain the most (or if the stock price falls, it will suffer the maximum loss).

Listed companies gained the most after the market capitalization reached ₪4.4 billion last week, but institutional investors, who own 19%, also benefited.

Let’s take a closer look to see what the different types of shareholders can tell us about Isras Investment.

Check out our latest analysis for Isras Investment.

What does institutional ownership tell us about Israeli investments?

Institutional investors commonly compare their own returns to the returns of a closely followed index. So they usually consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair bit of stake in Islas Investment. This may indicate that the company has some credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They also sometimes make mistakes. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. If such a trade goes wrong, multiple parties may compete to sell stock quickly. This risk is higher for companies without a history of growth. You can see Isras Investment’s historic earnings and revenue below, but keep in mind there’s always more to the story.

Hedge funds don’t have many shares in Islas Investment. Arad Investment & Industrial Development Ltd. is currently the largest shareholder with 59% of the outstanding shares. This essentially means that they have extensive influence, if not complete control, over the future of the company. By comparison, the second and third largest shareholders hold about 11% of the stock and his own 7.2%.

While researching institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. . As far as we know, there isn’t any analyst coverage of the company, so it’s probably flying under the radar.

Insider ownership in Isras Investment

The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be members of the board of directors. This is especially true if the manager is the founder or CEO.

I generally consider insider ownership to be a good thing. However, in some cases, it may be more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own a significant proportion of Isras Investment Company Ltd. It is very interesting to see that insiders own a significant amount of ₪463m shares in this ₪4.4b business. Most people would be happy to see the board investing alongside them. You may want to access this free chart of recent insider transactions.

Open to the public

With an ownership interest of 11%, the general public, mainly retail investors, has some influence over Islas Investments. While this size of ownership may not be enough to sway policy decisions in their favor, they can still collectively influence company policy.

Public company ownership

We can see that listed companies hold 59% of Isras Investment shares outstanding. We can’t be sure, but it’s very possible that this is a strategic interest. Businesses may be similar or may work together.

Next steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, risk.Every company has them and we discovered that 4 warning signs for Isras Investments (One of which we don’t really like!) You should know.

of course This may not be the best stock to buy.So take a look at this free free List of interesting companies.

Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.