Stock Analysis

Econergy Renewable Energy Ltd (TLV:ECNR) CEO Eyal Podhorzer's holdings dropped 10% in value as a result of the recent pullback

Published
TASE:ECNR

Key Insights

  • Insiders appear to have a vested interest in Econergy Renewable Energy's growth, as seen by their sizeable ownership
  • A total of 2 investors have a majority stake in the company with 56% ownership
  • Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls Econergy Renewable Energy Ltd (TLV:ECNR), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 73% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, insiders endured the biggest losses as the stock fell by 10%.

Let's delve deeper into each type of owner of Econergy Renewable Energy, beginning with the chart below.

View our latest analysis for Econergy Renewable Energy

TASE:ECNR Ownership Breakdown November 2nd 2023

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

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 Econergy Renewable Energy. 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. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

TASE:ECNR Earnings and Revenue Growth November 2nd 2023

Hedge funds don't have many shares in Econergy Renewable Energy. Looking at our data, we can see that the largest shareholder is the CEO Eyal Podhorzer with 28% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 28% and 9.8%, of the shares outstanding, respectively. Interestingly, the second-largest shareholder, Yoav Shapira is also Chief Operating Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Econergy Renewable Energy

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 Econergy Renewable Energy Ltd stock. This gives them a lot of power. That means they own ₪306m worth of shares in the ₪419m 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

The general public-- including retail investors -- own 23% stake in the company, and hence can't easily be ignored. 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 Econergy Renewable Energy better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Econergy Renewable Energy (including 2 which shouldn't be ignored) .

Of course this may not be the best stock to buy. So take a peek at this free 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.

Valuation is complex, but we're here to simplify it.

Discover if Econergy Renewable Energy might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.