With 82% institutional ownership, Energix - Renewable Energies Ltd. (TLV:ENRG) is a favorite amongst the big guns

Key Insights

• Significantly high institutional ownership implies Energix - Renewable Energies' stock price is sensitive to their trading actions
• 50% of the company is held by a single shareholder (Alony-Hetz Properties & Investments Ltd)
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

To get a sense of who is truly in control of Energix - Renewable Energies Ltd. (TLV:ENRG), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 82% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

Let's delve deeper into each type of owner of Energix - Renewable Energies, beginning with the chart below.

See our latest analysis for Energix - Renewable Energies

What Does The Institutional Ownership Tell Us About Energix - Renewable Energies?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Energix - Renewable Energies. 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 Energix - Renewable Energies' earnings history below. Of course, the future is what really matters.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Energix - Renewable Energies. Looking at our data, we can see that the largest shareholder is Alony-Hetz Properties & Investments Ltd with 50% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 7.5% and 5.9% of the shares outstanding respectively, Migdal Mutual Funds Ltd. and Phoenix Excellence Pension and Provident Ltd. are the second and third largest shareholders. In addition, we found that Asa Levinger, the CEO has 0.8% of the shares allocated to their name.

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 Energix - Renewable Energies

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

We can see that insiders own shares in Energix - Renewable Energies Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own ₪135m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Energix - Renewable Energies. 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:

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. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Energix - Renewable Energies (of which 2 don't sit too well with us!) you should know about.

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.