Stock Analysis

Individual investors among El Al Israel Airlines Ltd.'s (TLV:ELAL) largest stockholders and were hit after last week's 8.4% price drop

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Key Insights

  • The considerable ownership by individual investors in El Al Israel Airlines indicates that they collectively have a greater say in management and business strategy
  • A total of 2 investors have a majority stake in the company with 51% ownership
  • 48% of El Al Israel Airlines is held by insiders

A look at the shareholders of El Al Israel Airlines Ltd. (TLV:ELAL) can tell us which group is most powerful. We can see that individual investors own the lion's share in the company with 48% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders who own 48% came under pressure after market cap dropped to ₪2.1b last week,individual investors took the most losses.

Let's delve deeper into each type of owner of El Al Israel Airlines, beginning with the chart below.

View our latest analysis for El Al Israel Airlines

TASE:ELAL Ownership Breakdown May 22nd 2024

What Does The Institutional Ownership Tell Us About El Al Israel Airlines?

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.

Institutions have a very small stake in El Al Israel Airlines. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

TASE:ELAL Earnings and Revenue Growth May 22nd 2024

Hedge funds don't have many shares in El Al Israel Airlines. The company's largest shareholder is Eli Rozenberg, with ownership of 47%. Knafaim Holdings Ltd. is the second largest shareholder owning 3.1% of common stock, and Altshuler Shaham Ltd. holds about 0.5% of the company stock.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 51% stake.

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 El Al Israel Airlines

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 insiders own a significant proportion of El Al Israel Airlines Ltd.. Insiders have a ₪975m stake in this ₪2.1b business. 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-- including retail investors -- own 48% 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

We can see that public companies hold 3.1% of the El Al Israel Airlines shares on issue. 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 El Al Israel Airlines better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for El Al Israel Airlines you should be aware of, and 3 of them are concerning.

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.