Israel Canada (T.R) Ltd (TLV:ISCN) adds ₪188m in market cap and insiders have a 34% stake in that gain

Key Insights

• Israel Canada (T.R)'s significant insider ownership suggests inherent interests in company's expansion
• 53% of the business is held by the top 3 shareholders
• 31% of Israel Canada (T.R) is held by Institutions

Every investor in Israel Canada (T.R) Ltd (TLV:ISCN) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 34% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit ₪3.3b market cap following a 6.1% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Israel Canada (T.R).

Check out our latest analysis for Israel Canada (T.R)

What Does The Institutional Ownership Tell Us About Israel Canada (T.R)?

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.

Israel Canada (T.R) already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Israel Canada (T.R)'s earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Israel Canada (T.R). Looking at our data, we can see that the largest shareholder is Estate Of Ben David Ohayon Abraham with 19% of shares outstanding. For context, the second largest shareholder holds about 17% of the shares outstanding, followed by an ownership of 17% by the third-largest shareholder. Barak Rosen, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 Israel Canada (T.R)

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.

Our information suggests that insiders maintain a significant holding in Israel Canada (T.R) Ltd. It has a market capitalization of just ₪3.3b, and insiders have ₪1.1b worth of shares in their own names. 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-- including retail investors -- own 11% 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.

Private Company Ownership

It seems that Private Companies own 23%, of the Israel Canada (T.R) 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 Israel Canada (T.R) better, we need to consider many other factors. For instance, we've identified 2 warning signs for Israel Canada (T.R) (1 is a bit unpleasant) that you should be aware of.

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.