What you need to know about the investor mix of Azrieli Group Ltd (TLV: AZRG)

The large shareholder groups of Azrieli Group Ltd (TLV: AZRG) have power over the company. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. We also tend to see a decrease in insider ownership in companies that were previously owned by the state.

The Azrieli Group has a market cap of £ 37 billion, so it’s too big to go unnoticed. We expect institutions and retail investors to own a portion of the company. Looking at our data on ownership groups (below), it appears that institutions own shares in the company. We can zoom in on the different ownership groups, to find out more about Azrieli Group.

See our latest analysis for Azrieli Group

TASE: Distribution of ownership of AZRG on September 18, 2021

What does institutional ownership tell us about the Azrieli group?

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 businesses to have some institutions listed, especially if they are growing.

As you can see, institutional investors own a large share of the Azrieli group. This may indicate that the company has a certain degree of credibility in the investment community. However, it’s best to beware of relying on the so-called validation that comes with institutional investors. They too are sometimes wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company with no history of growth. You can see the historical profits and revenues of the Azrieli Group below, but keep in mind that there is always more to tell.

profit and revenue growth
TASE: AZRG Profit and Revenue Growth September 18, 2021

Hedge funds don’t have a lot of shares in Azrieli Group. The company’s largest shareholder is Azrieli Holdings Inc., with a 56% stake. Essentially, this means that they have considerable influence, if not absolute control, over the future of the business. With 8.6% and 5.7% of shares outstanding respectively, The Azrieli Foundation, Endowment Arm and Azrieli Israel Foundation, Endowment Arm are the second and third largest shareholders.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. There is a little analyst coverage of the stock, but not a lot. There is therefore room for it to acquire more cover.

Insider ownership of the Azrieli group

The definition of an insider may differ slightly from country to country, but board members still count. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.

Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own less than 1% of Azrieli Group Ltd. But they may have an indirect interest through a corporate structure that we have not identified. Since this is a large company, we would expect insiders to own only a small percentage. But it should be noted that they own 366,000 shares. In this kind of situation, it may be more interesting to see if these insiders have bought or sold.

General public property

The general public, with a 19% stake in the company, will not be easily ignored. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.

Owned by a private company

Our data indicates that private companies own 56% of the company’s shares. It may be worth pursuing the question further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the business.

Next steps:

While it is worth considering the different groups that own a business, there are other factors that are even more important. Concrete example: we have spotted 3 warning signs for the Azrieli Group you must be aware of this, and one of them must not be ignored.

If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
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