Amram Peretz Bonei Hatichon Civil Engineering & Infrastructures Ltd.'s (TLV:BOTI) CEO is the most bullish insider, and their stock value gained 13%last week

Key Insights

• Insiders appear to have a vested interest in Bonei Hatichon Civil Engineering & Infrastructures' growth, as seen by their sizeable ownership
• The top 2 shareholders own 71% of the company
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

If you want to know who really controls Bonei Hatichon Civil Engineering & Infrastructures Ltd. (TLV:BOTI), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 75% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders were the biggest beneficiaries of last week’s 13% gain.

In the chart below, we zoom in on the different ownership groups of Bonei Hatichon Civil Engineering & Infrastructures.

See our latest analysis for Bonei Hatichon Civil Engineering & Infrastructures

What Does The Institutional Ownership Tell Us About Bonei Hatichon Civil Engineering & Infrastructures?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Since institutions own only a small portion of Bonei Hatichon Civil Engineering & Infrastructures, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. So if the company itself can improve over time, we may well see more institutional buyers in the future. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Bonei Hatichon Civil Engineering & Infrastructures is not owned by hedge funds. With a 48% stake, CEO Amram Peretz is the largest shareholder. In comparison, the second and third largest shareholders hold about 22% and 2.3% of the stock.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Bonei Hatichon Civil Engineering & Infrastructures

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 information suggests that insiders own more than half of Bonei Hatichon Civil Engineering & Infrastructures Ltd.. This gives them effective control of the company. Given it has a market cap of ₪506m, that means they have ₪382m worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. 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 23% stake in Bonei Hatichon Civil Engineering & Infrastructures. 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. Be aware that Bonei Hatichon Civil Engineering & Infrastructures is showing 4 warning signs in our investment analysis , and 2 of those are significant...

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.