Meshek Energy - Renewable Energies Ltd. (TLV:MSKE) surges 13%; private companies who own 59% shares profited along with institutions

Key Insights

• The considerable ownership by private companies in Meshek Energy - Renewable Energies indicates that they collectively have a greater say in management and business strategy
• The top 21 shareholders own 32% of the company
• Institutional ownership in Meshek Energy - Renewable Energies is 21%

Every investor in Meshek Energy - Renewable Energies Ltd. (TLV:MSKE) should be aware of the most powerful shareholder groups. We can see that private companies own the lion's share in the company with 59% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While private companies were the group that reaped the most benefits after last week’s 13% price gain, institutions also received a 21% cut.

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

Check out our latest analysis for Meshek Energy - Renewable Energies

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

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 Meshek Energy - Renewable Energies. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Meshek Energy - Renewable Energies' historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Meshek Energy - Renewable Energies. Our data shows that Clal Pension And Gemel Ltd is the largest shareholder with 14% of shares outstanding. SARAMAITU (2009) LTD is the second largest shareholder owning 11% of common stock, and Phoenix Excellence Pension and Provident Ltd. holds about 3.5% of the company stock.

A deeper look at our ownership data shows that the top 21 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Meshek Energy - Renewable Energies

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.

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 note our data does not show any board members holding shares, personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

With a 20% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Meshek Energy - Renewable Energies. 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.

Private Company Ownership

We can see that Private Companies own 59%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Meshek Energy - Renewable Energies you should be aware of.

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.