key insights
Significant ownership of real estate and buildings by public companies indicates that they collectively have a greater say in management and business strategy.The company’s largest shareholder is Discount Investment Corporation Limited. , owns 71% of the stocks, and 14% of the real estate/buildings are owned by institutional investors.
Every investor in Property & Building Corp. Ltd. (TLV:PTBL) should be aware of the most powerful shareholder groups. Public companies hold the largest stake with 71% of the shares. That is, if the stock price rises, the group will gain the most (or if the stock price falls, it will suffer the maximum loss).
As a result, the listed company received the highest overall score last week, with its stock price rising 13% and reaching a market capitalization of ₪2 billion.
Let’s take a closer look at what the different types of shareholders can tell us about real estate and buildings.
Check out the latest analysis on real estate and buildings.
TASE:PTBL Ownership Breakdown October 31, 2024
What does facility ownership tell us about real estate and buildings?
Institutional investors commonly compare their own returns to the returns of a closely followed index. So they usually 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 Real Estate & Buildings. This suggests some credibility among professional investors. But we can’t rely on that fact alone because institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Property & Building, (below). Of course, keep in mind that there are other factors to consider as well.
TASE:PTBL Earnings and Revenue Growth October 31, 2024
Note that hedge funds do not have meaningful investments in real estate and buildings. Currently, Discount Investment Corporation is the largest shareholder with 71% of the outstanding shares. With such a huge ownership stake, we can assume that they have a lot of influence over the future of the company. Meanwhile, the second and third largest shareholders hold 6.6% and 1.5% of the shares outstanding, respectively.
Researching institutional ownership is a good way to assess and filter a stock’s expected performance. The same can be done by studying analyst sentiment. Based on our information, there aren’t any analyst coverage of this stock, so it’s probably little known.
Insider ownership of real estate and buildings
The definition of a company insider can be subjective and varies by jurisdiction. Our data reflects individual insiders, and at least captures board members. A company’s management runs the business, but the CEO answers to the board, even if he or she is a member of the board.
Insider ownership is positive when it signals leaders are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative depending on the situation.
Note that our data does not indicate that board members personally own shares. Not all jurisdictions have the same rules regarding disclosure of insider ownership. I may have overlooked something here. Click here to learn more about CEO.
Open to the public
With an ownership interest of 15%, the general public, made up primarily of private investors, has some degree of influence over real estate and buildings. Although this size of ownership is significant, it may not be enough to change company policy if the decision is not aligned with other large shareholders.
Public company ownership
Public companies appear to own 71% of the real estate and buildings. We can’t be sure, but it’s very possible that this is a strategic interest. Businesses may be similar or aligned.
Next steps:
I think it would be very interesting to see who exactly owns the company. But to really gain insight, you need to consider other information as well. To that end, you should learn about the 2 warning signs we’ve spotted with Real Estate & Buildings (including 1 which is significant).
Of course, you might find great investments if you look elsewhere. Take a peek at this free list of interesting companies.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the 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 using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
