Owning 55% in Meshulam Levinstein Contracting & Engineering Ltd. (TLV:LEVI) means that insiders are heavily invested in the company's future
Key Insights
- Meshulam Levinstein Contracting & Engineering's significant insider ownership suggests inherent interests in company's expansion
- A total of 2 investors have a majority stake in the company with 56% ownership
- 26% of Meshulam Levinstein Contracting & Engineering is held by Institutions
Every investor in Meshulam Levinstein Contracting & Engineering Ltd. (TLV:LEVI) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 55% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
So, insiders of Meshulam Levinstein Contracting & Engineering have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.
Let's delve deeper into each type of owner of Meshulam Levinstein Contracting & Engineering, beginning with the chart below.
Check out our latest analysis for Meshulam Levinstein Contracting & Engineering
What Does The Institutional Ownership Tell Us About Meshulam Levinstein Contracting & Engineering?
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 Meshulam Levinstein Contracting & Engineering 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Meshulam Levinstein Contracting & Engineering's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Meshulam Levinstein Contracting & Engineering. The company's CEO Shaul Lotan is the largest shareholder with 46% of shares outstanding. With 10% and 9.5% of the shares outstanding respectively, Shlomo Eliahu Holding Ltd. and Menora Mivtachim Provident Funds are the second and third largest shareholders.
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 56% 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Meshulam Levinstein Contracting & Engineering
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.
Our most recent data indicates that insiders own the majority of Meshulam Levinstein Contracting & Engineering Ltd.. This means they can collectively make decisions for the company. Given it has a market cap of ₪2.1b, that means they have ₪1.1b worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 19% stake in Meshulam Levinstein Contracting & Engineering. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Meshulam Levinstein Contracting & Engineering is showing 5 warning signs in our investment analysis , and 2 of those shouldn't be ignored...
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.
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.