After the recent decline, Econergy Renewable Energy Ltd (TLV:ECNR) CEO Eyal Podhorzer's holdings have lost 8.6% of their value

Key Insights

• Insiders appear to have a vested interest in Econergy Renewable Energy's growth, as seen by their sizeable ownership
• A total of 3 investors have a majority stake in the company with 52% ownership
• Institutions own 22% of Econergy Renewable Energy

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To get a sense of who is truly in control of Econergy Renewable Energy Ltd (TLV:ECNR), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 56% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 8.6% decline in share price, insiders suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Econergy Renewable Energy.

Check out our latest analysis for Econergy Renewable Energy

What Does The Institutional Ownership Tell Us About Econergy Renewable Energy?

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.

Econergy Renewable Energy already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Econergy Renewable Energy's earnings history below. Of course, the future is what really matters.

Econergy Renewable Energy is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Eyal Podhorzer with 21% of shares outstanding. For context, the second largest shareholder holds about 21% of the shares outstanding, followed by an ownership of 9.1% by the third-largest shareholder. Interestingly, the second-largest shareholder, Yoav Shapira is also Chief Operating Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 52% stake.

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 Econergy Renewable Energy

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.

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 most recent data indicates that insiders own the majority of Econergy Renewable Energy Ltd. This means they can collectively make decisions for the company. That means they own ₪1.1b worth of shares in the ₪2.0b company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 22% stake in the company, and hence can't easily be ignored. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Econergy Renewable Energy better, we need to consider many other factors. For example, we've discovered 5 warning signs for Econergy Renewable Energy (2 shouldn't be ignored!) that you should be aware of before investing here.

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.