Private companies who hold 54% of Ashtrom Group Ltd. (TLV:ASHG) gained 4.3%, institutions profited as well

Key Insights

• Significant control over Ashtrom Group by private companies implies that the general public has more power to influence management and governance-related decisions
• 54% of the company is held by a single shareholder (Unedco United Engineering and Development Company Ltd.)
• Institutions own 29% of Ashtrom Group

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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).

Following a 4.3% increase in the stock price last week, private companies profited the most, but institutions who own 29% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about Ashtrom Group.

See 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 suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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.

Hedge funds don't have many shares in Ashtrom Group. Unedco United Engineering and Development Company Ltd. is currently the largest shareholder, with 54% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 6.6% of the shares outstanding, followed by an ownership of 6.5% by the third-largest shareholder. Furthermore, CEO Gil Gueron is the owner of 0.7% of the company's shares.

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

Insider Ownership Of Ashtrom Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Shareholders would probably be interested to learn that insiders own shares in Ashtrom Group Ltd.. The insiders have a meaningful stake worth ₪363m. Most would see this as a real positive. It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. 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

Our data indicates that Private Companies hold 54%, of the company's shares. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Ashtrom Group better, we need to consider many other factors. For instance, we've identified 4 warning signs for Ashtrom Group (2 are potentially serious) that you should be aware of.

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.