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- TASE:ISRA
Both individual investors who control a good portion of Isramco Negev 2 Limited Partnership (TLV:ISRA) along with institutions must be dismayed after last week's 3.4% decrease
Key Insights
- Isramco Negev 2 Limited Partnership's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
- 52% of the business is held by the top 6 shareholders
- Institutions own 37% of Isramco Negev 2 Limited Partnership
To get a sense of who is truly in control of Isramco Negev 2 Limited Partnership (TLV:ISRA), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 41% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Following a 3.4% decrease in the stock price last week, individual investors suffered the most losses, but institutions who own 37% stock also took a hit.
Let's delve deeper into each type of owner of Isramco Negev 2 Limited Partnership, beginning with the chart below.
Check out our latest analysis for Isramco Negev 2 Limited Partnership
What Does The Institutional Ownership Tell Us About Isramco Negev 2 Limited Partnership?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors have a fair amount of stake in Isramco Negev 2 Limited Partnership. 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 Isramco Negev 2 Limited Partnership's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Isramco Negev 2 Limited Partnership. Equital Ltd. is currently the company's largest shareholder with 22% of shares outstanding. For context, the second largest shareholder holds about 11% of the shares outstanding, followed by an ownership of 6.4% by the third-largest shareholder.
On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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 Isramco Negev 2 Limited Partnership
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 most recent data indicates that insiders own less than 1% of Isramco Negev 2 Limited Partnership. Keep in mind that it's a big company, and the insiders own ₪27m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public-- including retail investors -- own 41% 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.
Public Company Ownership
It appears to us that public companies own 22% of Isramco Negev 2 Limited Partnership. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 3 warning signs for Isramco Negev 2 Limited Partnership you should be aware of, and 1 of them 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.
About TASE:ISRA
Isramco Negev 2 Limited Partnership
Engages in the exploration, development, and production of oil, natural gas, and condensate in Israel, Jordan, and Egypt.
Average dividend payer and fair value.
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