Both private companies who control a good portion of Ashtrom Group Ltd. (TLV:ASHG) along with institutions must be dismayed after last week's 3.6% decrease

Key Insights

• The considerable ownership by private companies in Ashtrom Group indicates that they collectively have a greater say in management and business strategy
• 54% of the company is held by a single shareholder (Unedco United Engineering and Development Company Ltd.)
• 27% of Ashtrom Group is held by Institutions

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Every investor in Ashtrom Group Ltd. (TLV:ASHG) should be aware of the most powerful shareholder groups. With 54% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While institutions, who own 27% shares weren’t spared from last week’s ₪233m market cap drop, private companies as a group suffered the maximum losses

Let's delve deeper into each type of owner of Ashtrom Group, beginning with the chart below.

View our latest analysis for Ashtrom Group

What Does The Institutional Ownership Tell Us About Ashtrom Group?

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.

We can see that Ashtrom Group does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Ashtrom Group's historic earnings and revenue below, but keep in mind there's always more to the story.

Ashtrom Group is not owned by hedge funds. The company's largest shareholder is Unedco United Engineering and Development Company Ltd., with ownership of 54%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 7.0% and 6.1% of the shares outstanding respectively, Menora Mivtachim Provident Funds and Clal Pension And Gemel Ltd are the second and third largest shareholders. Additionally, the company's CEO Gil Gueron directly holds 0.7% of the total shares outstanding.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Ashtrom Group

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.

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

We can see that insiders own shares in Ashtrom Group Ltd.. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around ₪264m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Ashtrom Group. 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.

Private Company Ownership

It seems that Private Companies own 54%, of the Ashtrom Group stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 3 warning signs we've spotted with Ashtrom Group (including 2 which are a bit unpleasant) .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.