The recent pullback must have dismayed Lahav LR Real Estate Ltd (TLV:LAHAV) insiders who own 58% of the company
To get a sense of who is truly in control of Lahav LR Real Estate Ltd (TLV:LAHAV), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 58% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And following last week’s 11% decline in share price, insiders suffered the most losses.
Let’s take a closer look to see what the different types of shareholders can tell us about Lahav LR Real Estate.
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TASE:LAHAV Ownership Breakdown December 29th 2022
What Does The Institutional Ownership Tell Us About Lahav LR Real Estate?
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.
As you can see, institutional investors have a fair amount of stake in Lahav LR Real Estate. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop almost. It’s therefore worth looking at Lahav LR Real Estate’s earnings history below. Of course, the future is what really matters.
Lahav LR Real Estate is not owned by hedge funds. Avraham Levy is currently the company’s largest shareholder with 44% of shares outstanding. Hagit & Ali Investments Ltd. is the second largest shareholder owning 11% of common stock, and Naftali Shimshon holds about 8.0% of the company stock. Naftali Shimshon, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 55% stake.
Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be achieved by studying analyst sentiments. As far as we can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Lahav LR Real Estate
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that insiders own more than half of Lahav LR Real Estate Ltd. This gives them effective control of the company. Given it has a market cap of ₪774m, that means they have ₪449m worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 19% stake in Lahav LR Real Estate. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Company Ownership
It seems that Private Companies own 13%, of the Lahav LR Real Estate stock. It’s hard to draw any conclusions from this fact alone, so it’s worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
next steps:
It’s always worth thinking about the different groups who own shares in a company. But to understand Lahav LR Real Estate better, we need to consider many other factors. Like risks, for instance. Every company has them, and we’ve spotted 2 warning signs for Lahav LR Real Estate (of which 1 is a bit concerning!) you should know about.
Of course this may not be the best stock to buy. Therefore, you may wish to see our free Collection of interesting prospects boasting favorable financials.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.