Navitas Petroleum, Limited Partnership's (TLV:NVPT) high institutional ownership speaks for itself as stock continues to impress, up 4.6% over last week

Key Insights

• Given the large stake in the stock by institutions, Navitas Petroleum Limited Partnership's stock price might be vulnerable to their trading decisions
• 52% of the business is held by the top 11 shareholders
• Insider ownership in Navitas Petroleum Limited Partnership is 16%

To get a sense of who is truly in control of Navitas Petroleum, Limited Partnership (TLV:NVPT), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are institutions with 40% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And things are looking up for institutional investors after the company gained ₪232m in market cap last week. The one-year return on investment is currently 115% and last week's gain would have been more than welcomed.

Let's delve deeper into each type of owner of Navitas Petroleum Limited Partnership, beginning with the chart below.

Check out our latest analysis for Navitas Petroleum Limited Partnership

What Does The Institutional Ownership Tell Us About Navitas Petroleum 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 Navitas Petroleum Limited Partnership. 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 Navitas Petroleum Limited Partnership, (below). Of course, keep in mind that there are other factors to consider, too.

Our data indicates that hedge funds own 7.1% of Navitas Petroleum Limited Partnership. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Looking at our data, we can see that the largest shareholder is Gideon C. Tadmor with 11% of shares outstanding. For context, the second largest shareholder holds about 7.1% of the shares outstanding, followed by an ownership of 6.1% by the third-largest shareholder. Furthermore, CEO Amit Kornhauser is the owner of 0.7% of the company's shares.

After doing some more digging, we found that the top 11 have the combined ownership of 52% in the company, suggesting that no single shareholder has significant control over the company.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Navitas Petroleum Limited Partnership

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 a reasonable proportion of Navitas Petroleum, Limited Partnership. It is very interesting to see that insiders have a meaningful ₪838m stake in this ₪5.2b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. 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 37% stake in Navitas Petroleum Limited Partnership. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 5 warning signs we've spotted with Navitas Petroleum Limited Partnership (including 2 which can't be ignored) .

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.