Ratio Energies - Limited Partnership's (TLV:RATI) market cap touched ₪5.0b last week, benefiting both individual investors who own 49% as well as institutions

Key Insights

• The considerable ownership by individual investors in Ratio Energies - Limited Partnership indicates that they collectively have a greater say in management and business strategy
• A total of 18 investors have a majority stake in the company with 50% ownership
• Institutions own 28% of Ratio Energies - Limited Partnership

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If you want to know who really controls Ratio Energies - Limited Partnership (TLV:RATI), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual investors with 49% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While individual investors were the group that benefitted the most from last week’s ₪180m market cap gain, institutions too had a 28% share in those profits.

Let's delve deeper into each type of owner of Ratio Energies - Limited Partnership, beginning with the chart below.

Check out our latest analysis for Ratio Energies - Limited Partnership

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

Ratio Energies - Limited Partnership is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Landlan Investments Ltd. with 12% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 9.1% and 8.8%, of the shares outstanding, respectively. In addition, we found that Yigal Landau, the CEO has 0.9% of the shares allocated to their name.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 18 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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

Insider Ownership Of Ratio Energies - 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.

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.

We can report that insiders do own shares in Ratio Energies - Limited Partnership. This is a big company, so it is good to see this level of alignment. Insiders own ₪98m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 49% stake in Ratio Energies - Limited Partnership. 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 22%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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 Ratio Energies - Limited Partnership you should know about.

Of course this may not be the best stock to buy. So take a peek at this free 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.

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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.