The recent 11% gain must have brightened Top Key Executive Chaim Friedman's week, Azorim-Investment, Development & Construction Co. Ltd's (TLV:AZRM) most bullish insider

Key Insights

• Significant insider control over Azorim-Investment Development & Construction implies vested interests in company growth
• 66% of the company is held by a single shareholder (Chaim Friedman)
• 23% of Azorim-Investment Development & Construction is held by Institutions

If you want to know who really controls Azorim-Investment, Development & Construction Co. Ltd (TLV:AZRM), then you'll have to look at the makeup of its share registry. With 66% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by ₪263m last week.

In the chart below, we zoom in on the different ownership groups of 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 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. 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 Azorim-Investment Development & Construction, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Azorim-Investment Development & Construction. Our data suggests that Chaim Friedman, who is also the company's Top Key Executive, holds the most number of shares at 66%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. In comparison, the second and third largest shareholders hold about 9.1% and 6.8% of the stock.

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. 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 Azorim-Investment Development & Construction

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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. So they have a ₪1.8b stake in this ₪2.7b business. 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

With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Azorim-Investment Development & Construction. 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. For instance, we've identified 4 warning signs for Azorim-Investment Development & Construction (1 is significant) 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.