An excellent week for Land Development of Nimrodi Group Ltd.'s (TLV:ILDC) institutional owners who own 28% as one-year returns inch higher
Key Insights
- Significantly high institutional ownership implies Land Development of Nimrodi Group's stock price is sensitive to their trading actions
- The top 3 shareholders own 61% of the company
- 25% of Land Development of Nimrodi Group is held by insiders
If you want to know who really controls Land Development of Nimrodi Group Ltd. (TLV:ILDC), 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 28% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And as as result, institutional investors reaped the most rewards after the company's stock price gained 12% last week. One-year return to shareholders is currently 3.5% and last week’s gain was the icing on the cake.
Let's delve deeper into each type of owner of Land Development of Nimrodi Group, beginning with the chart below.
Check out our latest analysis for Land Development of Nimrodi Group
What Does The Institutional Ownership Tell Us About Land Development of Nimrodi Group?
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.
As you can see, institutional investors have a fair amount of stake in Land Development of Nimrodi Group. 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. 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 Land Development of Nimrodi Group, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Land Development of Nimrodi Group. Our data shows that Estate of Jackob Nimrodi is the largest shareholder with 25% of shares outstanding. For context, the second largest shareholder holds about 24% of the shares outstanding, followed by an ownership of 12% by the third-largest shareholder. Ofer Nimrodi, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 61% stake.
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 Land Development of Nimrodi Group
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 information suggests that insiders maintain a significant holding in Land Development of Nimrodi Group Ltd.. Insiders have a ₪320m stake in this ₪1.3b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. 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 22% stake in Land Development of Nimrodi Group. 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
It seems that Private Companies own 25%, of the Land Development of Nimrodi Group stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Land Development of Nimrodi Group better, we need to consider many other factors. Be aware that Land Development of Nimrodi Group is showing 3 warning signs in our investment analysis , and 1 of those can't be ignored...
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.