Insiders were the biggest winners as Azorim-Investment, Development & Construction Co. Ltd's (TLV:AZRM) market cap grew by ₪362m last week

Key Insights

• Insiders appear to have a vested interest in Azorim-Investment Development & Construction's growth, as seen by their sizeable ownership
• 66% of the company is held by a single shareholder (Chaim Friedman)
• Institutions own 23% of Azorim-Investment Development & Construction

To get a sense of who is truly in control of Azorim-Investment, Development & Construction Co. Ltd (TLV:AZRM), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 66% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by ₪362m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Azorim-Investment Development & Construction.

See our latest analysis for Azorim-Investment Development & Construction

What Does The Institutional Ownership Tell Us About Azorim-Investment Development & Construction?

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.

Azorim-Investment Development & Construction already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Azorim-Investment Development & Construction's historic earnings and revenue below, but keep in mind there's always more to the story.

Azorim-Investment Development & Construction is not owned by hedge funds. The company's largest shareholder is Chaim Friedman, with ownership of 66%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 9.1% and 6.8% of the shares outstanding respectively, The Phoenix Excellence Pension & Provident Fund Ltd. and Migdal Mutual Funds Ltd. are the second and third largest shareholders.

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 Azorim-Investment Development & Construction

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 information suggests that insiders own more than half of Azorim-Investment, Development & Construction Co. Ltd. This gives them effective control of the company. That means they own ₪1.6b worth of shares in the ₪2.4b company. That's quite meaningful. 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-- including retail investors -- own 11% 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.

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. Take risks for example - Azorim-Investment Development & Construction has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.

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.