Tadiran Group Ltd's (TLV:TDRN) most bullish insider, CEO Moshe Mamrod must be pleased with the recent 12% gain

Key Insights

• Tadiran Group's significant insider ownership suggests inherent interests in company's expansion
• 64% of the company is held by a single shareholder (Moshe Mamrod)
• Institutions own 25% of Tadiran Group

To get a sense of who is truly in control of Tadiran Group Ltd (TLV:TDRN), it is important to understand the ownership structure of the business. With 65% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit ₪2.4b market cap following a 12% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Tadiran Group.

See our latest analysis for Tadiran Group

What Does The Institutional Ownership Tell Us About Tadiran Group?

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 Tadiran Group. 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. 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 Tadiran Group's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Tadiran Group. Looking at our data, we can see that the largest shareholder is the CEO Moshe Mamrod with 64% of shares outstanding. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. With 7.2% and 6.6% of the shares outstanding respectively, Phoenix Excellence Pension and Provident Ltd. and Shlomo Eliahu Holding Ltd, Asset Management Arm are the second and third largest shareholders.

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 Tadiran Group

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. 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.

It seems that insiders own more than half the Tadiran Group Ltd stock. This gives them a lot of power. That means they own ₪1.5b worth of shares in the ₪2.4b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Tadiran Group. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

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. Case in point: We've spotted 3 warning signs for Tadiran Group you should be aware of, and 2 of them are a bit unpleasant.

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.