Insiders the biggest winners as Solaer Renewable Energies Ltd's (TLV:SOLR) market cap rises to ₪624m

Key Insights

• Insiders appear to have a vested interest in Solaer Renewable Energies' growth, as seen by their sizeable ownership
• Paula Willin Segev owns 54% of the company
• Institutions own 33% of Solaer Renewable Energies

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

If you want to know who really controls Solaer Renewable Energies Ltd (TLV:SOLR), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 54% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 14% gain.

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

Check out our latest analysis for Solaer Renewable Energies

What Does The Institutional Ownership Tell Us About Solaer Renewable Energies?

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.

We can see that Solaer Renewable Energies does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Solaer 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 Solaer Renewable Energies. Looking at our data, we can see that the largest shareholder is Paula Willin Segev with 54% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 14% and 12% of the shares outstanding respectively, Phoenix Excellence Pension and Provident Ltd. and Intergemel Provident Funds and Pension Ltd. are the second and third largest shareholders.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Solaer Renewable Energies

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. 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.

Our most recent data indicates that insiders own the majority of Solaer Renewable Energies Ltd. This means they can collectively make decisions for the company. That means they own ₪337m worth of shares in the ₪624m 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, who are usually individual investors, hold a 12% stake in Solaer Renewable Energies. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Solaer Renewable Energies better, we need to consider many other factors. For example, we've discovered 2 warning signs for Solaer Renewable Energies 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.