Insiders the biggest winners as Kvutzat Acro Ltd's (TLV:ACRO) market cap rises to ₪3.6b

Key Insights

• Significant insider control over Kvutzat Acro implies vested interests in company growth
• The top 4 shareholders own 57% of the company
• Institutional ownership in Kvutzat Acro is 26%

Every investor in Kvutzat Acro Ltd (TLV:ACRO) should be aware of the most powerful shareholder groups. With 59% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders were the biggest beneficiaries of last week’s 7.3% gain.

In the chart below, we zoom in on the different ownership groups of Kvutzat Acro.

See our latest analysis for Kvutzat Acro

What Does The Institutional Ownership Tell Us About Kvutzat Acro?

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

Kvutzat Acro already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Kvutzat Acro, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Kvutzat Acro. Looking at our data, we can see that the largest shareholder is Izhak Arabov with 26% of shares outstanding. Phoenix Excellence Pension and Provident Ltd. is the second largest shareholder owning 12% of common stock, and Raya Strauss Ben Dror holds about 10% of the company stock. Additionally, the company's CEO Ziv Yacobi directly holds 5.1% of the total shares outstanding.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Kvutzat Acro

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders own more than half of Kvutzat Acro Ltd. This gives them effective control of the company. Given it has a market cap of ₪3.6b, that means they have ₪2.1b 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

With a 15% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Kvutzat Acro. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Kvutzat Acro better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Kvutzat Acro (of which 2 are a bit unpleasant!) 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.