Stock Analysis

Insiders the biggest winners as Emilia Development (O.F.G) Ltd.'s (TLV:EMDV) market cap rises to ₪626m

TASE:EMDV
Source: Shutterstock

Key Insights

  • Emilia Development (O.F.G)'s significant insider ownership suggests inherent interests in company's expansion
  • The largest shareholder of the company is Oded Feller with a 86% stake
  • Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Emilia Development (O.F.G) Ltd. (TLV:EMDV) should be aware of the most powerful shareholder groups. With 86% stake, individual insiders 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).

As a result, insiders were the biggest beneficiaries of last week’s 11% gain.

Let's delve deeper into each type of owner of Emilia Development (O.F.G), beginning with the chart below.

See our latest analysis for Emilia Development (O.F.G)

ownership-breakdown
TASE:EMDV Ownership Breakdown June 20th 2024

What Does The Institutional Ownership Tell Us About Emilia Development (O.F.G)?

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.

Since institutions own only a small portion of Emilia Development (O.F.G), many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

earnings-and-revenue-growth
TASE:EMDV Earnings and Revenue Growth June 20th 2024

Hedge funds don't have many shares in Emilia Development (O.F.G). Our data shows that Oded Feller is the largest shareholder with 86% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Altshuler Shaham Ltd. is the second largest shareholder owning 1.3% of common stock, and More Investment House Ltd. holds about 0.8% of the company stock.

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. 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 Emilia Development (O.F.G)

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Our most recent data indicates that insiders own the majority of Emilia Development (O.F.G) Ltd.. This means they can collectively make decisions for the company. So they have a ₪539m stake in this ₪626m 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

The general public-- including retail investors -- own 11% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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 2 warning signs we've spotted with Emilia Development (O.F.G) (including 1 which shouldn't be ignored) .

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.

Valuation is complex, but we're here to simplify it.

Discover if Emilia Development (O.F.G) might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.