Public companies are Rani Zim Shopping Centers Ltd's (TLV:RANI) biggest owners and were hit after market cap dropped ₪122m

Key Insights

• The considerable ownership by public companies in Rani Zim Shopping Centers indicates that they collectively have a greater say in management and business strategy
• 58% of the business is held by the top 2 shareholders
• Insider ownership in Rani Zim Shopping Centers is 28%

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Every investor in Rani Zim Shopping Centers Ltd (TLV:RANI) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 30% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While the holdings of public companies took a hit after last week’s 12% price drop, insiders with their 28% also suffered.

Let's take a closer look to see what the different types of shareholders can tell us about Rani Zim Shopping Centers.

View our latest analysis for Rani Zim Shopping Centers

What Does The Institutional Ownership Tell Us About Rani Zim Shopping Centers?

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 Rani Zim Shopping Centers. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Rani Zim Shopping Centers' earnings history below. Of course, the future is what really matters.

Rani Zim Shopping Centers is not owned by hedge funds. Hagag Group Real Estate Entrepreneurship Ltd is currently the largest shareholder, with 30% of shares outstanding. For context, the second largest shareholder holds about 28% of the shares outstanding, followed by an ownership of 9.6% by the third-largest shareholder. Rani Zim, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. 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 Rani Zim Shopping Centers

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 most recent data indicates that insiders own a reasonable proportion of Rani Zim Shopping Centers Ltd. Insiders own ₪263m worth of shares in the ₪938m company. 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 24% stake in Rani Zim Shopping Centers. 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 30% of Rani Zim Shopping Centers. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Rani Zim Shopping Centers (at least 1 which is a bit concerning) , and understanding them should be part of your investment process.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.