While institutions invested in Levinstein Properties Ltd (TLV:LVPR) benefited from last week's 10% gain, public companies stood to gain the most

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 70% stake
• Institutional ownership in Levinstein Properties is 18%

Every investor in Levinstein Properties Ltd (TLV:LVPR) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 70% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 10% increase in the stock price last week, public companies profited the most, but institutions who own 18% 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 Levinstein Properties.

Check out our latest analysis for Levinstein Properties

What Does The Institutional Ownership Tell Us About Levinstein Properties?

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.

As you can see, institutional investors have a fair amount of stake in Levinstein Properties. 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 Levinstein Properties, (below). Of course, keep in mind that there are other factors to consider, too.

Levinstein Properties is not owned by hedge funds. Our data shows that Meshulam Levinstein Contracting & Engineering Ltd. is the largest shareholder with 70% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Meanwhile, the second and third largest shareholders, hold 9.9% and 2.5%, of the shares outstanding, respectively.

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. 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.

Our data suggests that insiders own under 1% of Levinstein Properties Ltd in their own names. It appears that the board holds about ₪402k worth of stock. This compares to a market capitalization of ₪1.1b. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 12% 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

Public companies currently own 70% of Levinstein Properties stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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 instance, we've identified 1 warning sign for Levinstein Properties 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.