Hagag Europe Development Z.F. Ltd (TLV:HGGE) adds ₪76m in market cap and insiders have a 89% stake in that gain

Key Insights

• Insiders appear to have a vested interest in Hagag Europe Development Z.F's growth, as seen by their sizeable ownership
• The largest shareholder of the company is Yizhaq Hajaj with a 53% stake
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in Hagag Europe Development Z.F. Ltd (TLV:HGGE) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 89% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by ₪76m last week.

Let's delve deeper into each type of owner of Hagag Europe Development Z.F, beginning with the chart below.

Check out our latest analysis for Hagag Europe Development Z.F

What Does The Lack Of Institutional Ownership Tell Us About Hagag Europe Development Z.F?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Hagag Europe Development Z.F might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Hedge funds don't have many shares in Hagag Europe Development Z.F. Yizhaq Hajaj is currently the company's largest shareholder with 53% of shares outstanding. This implies that they have majority interest control of the future of the company. Meanwhile, the second and third largest shareholders, hold 21% and 8.7%, of the shares outstanding, respectively. Shahar Machat, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Hagag Europe Development Z.F

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.

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.

Our most recent data indicates that insiders own the majority of Hagag Europe Development Z.F. Ltd. This means they can collectively make decisions for the company. Given it has a market cap of ₪374m, that means they have ₪335m worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 10% stake in the company, and hence can't easily be ignored. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for Hagag Europe Development Z.F (1 is 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.