Stock Analysis

Here's What Ratio Oil Exploration (1992) Limited Partnership's (TLV:RATI.L) Shareholder Ownership Structure Looks Like

TASE:RATI
Source: Shutterstock

The big shareholder groups in Ratio Oil Exploration (1992) Limited Partnership (TLV:RATI.L) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that used to be publicly owned tend to have lower insider ownership.

Ratio Oil Exploration (1992) Limited Partnership is a smaller company with a market capitalization of ₪1.6b, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Ratio Oil Exploration (1992) Limited Partnership.

Check out our latest analysis for Ratio Oil Exploration (1992) Limited Partnership

ownership-breakdown
TASE:RATI.L Ownership Breakdown February 12th 2021

What Does The Institutional Ownership Tell Us About Ratio Oil Exploration (1992) 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.

We can see that Ratio Oil Exploration (1992) Limited Partnership does have institutional investors; and they hold a good portion of the company's stock. 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 Ratio Oil Exploration (1992) Limited Partnership's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
TASE:RATI.L Earnings and Revenue Growth February 12th 2021

Hedge funds don't have many shares in Ratio Oil Exploration (1992) Limited Partnership. Landlan Investments Ltd. is currently the largest shareholder, with 10% of shares outstanding. With 8.9% and 8.4% of the shares outstanding respectively, Menora Mivtachim Pensions & Gemel Ltd. and Ratio Oil Explorations Ltd are the second and third largest shareholders. In addition, we found that Yigal Landau, the CEO has 0.9% of the shares allocated to their name.

We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Ratio Oil Exploration (1992) Limited Partnership

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

I can report that insiders do own shares in Ratio Oil Exploration (1992) Limited Partnership. In their own names, insiders own ₪30m worth of stock in the ₪1.6b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, with a 41% stake in the company, will not 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.

Private Company Ownership

We can see that Private Companies own 20%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

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 for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Ratio Oil Exploration (1992) Limited Partnership (at least 1 which is concerning) , and understanding them should be part of your investment process.

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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