public companies who own 71% along with institutions invested in Levinstein Properties Ltd (TLV:LVPR) saw increase in their holdings value last week

Key Insights

• Significant control over Levinstein Properties by public companies implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is Meshulam Levinstein Contracting & Engineering Ltd. with a 71% stake
• 15% of Levinstein Properties is held by Institutions

Every investor in Levinstein Properties Ltd (TLV:LVPR) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 71% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Public companies gained the most after market cap touched ₪1.3b last week, while institutions who own 15% also benefitted.

Let's delve deeper into each type of owner of Levinstein Properties, beginning with the chart below.

View our latest analysis for Levinstein Properties

What Does The Institutional Ownership Tell Us About Levinstein Properties?

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.

Levinstein Properties 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Levinstein Properties' historic earnings and revenue below, but keep in mind there's always more to the story.

Levinstein Properties is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Meshulam Levinstein Contracting & Engineering Ltd. with 71% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Menora Mivtachim Provident Funds is the second largest shareholder owning 9.9% of common stock, and Altshuler Shaham Ltd. holds about 3.0% of the company stock.

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 Levinstein Properties

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

We note our data does not show any board members holding shares, personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. 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

It appears to us that public companies own 71% of Levinstein Properties. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Levinstein Properties better, we need to consider many other factors. Take risks for example - Levinstein Properties has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.