Institutional owners may consider drastic measures as Alony-Hetz Properties & Investments Ltd's (TLV:ALHE) recent ₪198m drop adds to long-term losses

Key Insights

• Institutions' substantial holdings in Alony-Hetz Properties & Investments implies that they have significant influence over the company's share price
• 53% of the business is held by the top 8 shareholders
• 15% of Alony-Hetz Properties & Investments is held by insiders

If you want to know who really controls Alony-Hetz Properties & Investments Ltd (TLV:ALHE), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 50% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And institutional investors endured the highest losses after the company's share price fell by 4.1% last week. Needless to say, the recent loss which further adds to the one-year loss to shareholders of 11% might not go down well especially with this category of shareholders. Often called “market movers", institutions wield significant power in influencing the price dynamics of any stock. Hence, if weakness in Alony-Hetz Properties & Investments' share price continues, institutional investors may feel compelled to sell the stock, which might not be ideal for individual investors.

Let's take a closer look to see what the different types of shareholders can tell us about Alony-Hetz Properties & Investments.

View our latest analysis for Alony-Hetz Properties & Investments

What Does The Institutional Ownership Tell Us About Alony-Hetz Properties & Investments?

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 Alony-Hetz Properties & Investments. 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. 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 Alony-Hetz Properties & Investments' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Alony-Hetz Properties & Investments. With a 14% stake, CEO Nathan Hetz is the largest shareholder. In comparison, the second and third largest shareholders hold about 8.9% and 8.2% of the stock.

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.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. 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 Alony-Hetz Properties & Investments

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

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.

It seems insiders own a significant proportion of Alony-Hetz Properties & Investments Ltd. It has a market capitalization of just ₪4.7b, and insiders have ₪704m worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 35% stake in Alony-Hetz Properties & Investments. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Alony-Hetz Properties & Investments better, we need to consider many other factors. For example, we've discovered 5 warning signs for Alony-Hetz Properties & Investments (3 are a bit concerning!) that you should be aware of before investing here.

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.