Public companies who hold 60% of Kardan Real Estate Enterprise and Development Ltd (TLV:KARE) gained 10%, institutions profited as well

Key Insights

• Kardan Real Estate Enterprise and Development's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• The largest shareholder of the company is Kardan Israel Ltd with a 60% stake
• Institutions own 29% of Kardan Real Estate Enterprise and Development

To get a sense of who is truly in control of Kardan Real Estate Enterprise and Development Ltd (TLV:KARE), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 60% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 10% increase in the stock price last week, public companies profited the most, but institutions who own 29% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about Kardan Real Estate Enterprise and Development.

View our latest analysis for Kardan Real Estate Enterprise and Development

What Does The Institutional Ownership Tell Us About Kardan Real Estate Enterprise and Development?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Kardan Real Estate Enterprise and Development. 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 Kardan Real Estate Enterprise and Development, (below). Of course, keep in mind that there are other factors to consider, too.

Kardan Real Estate Enterprise and Development is not owned by hedge funds. Kardan Israel Ltd is currently the largest shareholder, with 60% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. For context, the second largest shareholder holds about 16% of the shares outstanding, followed by an ownership of 8.5% by the third-largest shareholder.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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 Kardan Real Estate Enterprise and Development

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.

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 most recent data indicates that insiders own less than 1% of Kardan Real Estate Enterprise and Development Ltd. It seems the board members have no more than ₪2.1m worth of shares in the ₪666m company. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public, who are usually individual investors, hold a 11% stake in Kardan Real Estate Enterprise and Development. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 60% of Kardan Real Estate Enterprise and Development stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Kardan Real Estate Enterprise and Development (of which 1 is concerning!) you should know about.

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.