Individual investors own 36% of NewMed Energy - Limited Partnership (TLV:NWMD) shares but public companies control 54% of the company

Key Insights

• The considerable ownership by public companies in NewMed Energy - Limited Partnership indicates that they collectively have a greater say in management and business strategy
• Delek Group Ltd. owns 54% of the company
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

To get a sense of who is truly in control of NewMed Energy - Limited Partnership (TLV:NWMD), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are public companies with 54% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, individual investors make up 36% of the company’s shareholders.

Let's take a closer look to see what the different types of shareholders can tell us about NewMed Energy - Limited Partnership.

View our latest analysis for NewMed Energy - Limited Partnership

What Does The Institutional Ownership Tell Us About NewMed Energy - Limited Partnership?

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.

NewMed Energy - Limited Partnership 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. 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 NewMed Energy - Limited Partnership's historic earnings and revenue below, but keep in mind there's always more to the story.

NewMed Energy - Limited Partnership is not owned by hedge funds. The company's largest shareholder is Delek Group Ltd., with ownership of 54%. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 4.1% and 1.2% 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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of NewMed Energy - Limited Partnership

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that NewMed Energy - Limited Partnership insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own ₪7.7m worth of shares. The absolute value might be more important than the proportional share. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 36% stake in NewMed Energy - Limited Partnership. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

It appears to us that public companies own 54% of NewMed Energy - 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. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for NewMed Energy - Limited Partnership you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.