What You Need To Know About Hiron-Trade Investments & Industrial Buildings Ltd's (TLV:HRON) Investor Composition

A look at the shareholders of Hiron-Trade Investments & Industrial Buildings Ltd (TLV:HRON) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

With a market capitalization of ₪577m, Hiron-Trade Investments & Industrial Buildings is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Hiron-Trade Investments & Industrial Buildings.

See our latest analysis for Hiron-Trade Investments & Industrial Buildings

What Does The Institutional Ownership Tell Us About Hiron-Trade Investments & Industrial Buildings?

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.

Hiron-Trade Investments & Industrial Buildings already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Hiron-Trade Investments & Industrial Buildings' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Hiron-Trade Investments & Industrial Buildings. The company's CEO Arie Amir is the largest shareholder with 24% of shares outstanding. Dan Rozner is the second largest shareholder owning 23% of common stock, and Ronit Amir Roth holds about 19% of the company stock. Interestingly, the second and third-largest shareholders also happen to be the Unit CEO and Chairman of the Board, respectively. This once again signifies considerable insider ownership amongst the company's top shareholders.

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 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 Hiron-Trade Investments & Industrial Buildings

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own the majority of Hiron-Trade Investments & Industrial Buildings Ltd. This means they can collectively make decisions for the company. So they have a ₪464m stake in this ₪577m business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public holds a 11% stake in Hiron-Trade Investments & Industrial Buildings. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Hiron-Trade Investments & Industrial Buildings better, we need to consider many other factors. Be aware that Hiron-Trade Investments & Industrial Buildings is showing 1 warning sign in our investment analysis , 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.

If you decide to trade Hiron-Trade Investments & Industrial Buildings, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.