Every investor in Navitas Petroleum, Limited Partnership (TLV:NVPT) should be aware of the most powerful shareholder groups. With 36% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And last week, institutional investors ended up benefitting the most after the company hit ₪2.7b in market cap. The one-year return on investment is currently 49% and last week's gain would have been more than welcomed.
Let's take a closer look to see what the different types of shareholders can tell us about Navitas Petroleum Limited Partnership.
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.
Navitas Petroleum Limited Partnership already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Navitas Petroleum Limited Partnership's historic earnings and revenue below, but keep in mind there's always more to the story.
It looks like hedge funds own 9.0% of Navitas Petroleum Limited Partnership shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. The company's largest shareholder is Gideon C. Tadmor, with ownership of 12%. In comparison, the second and third largest shareholders hold about 9.0% and 6.5% of the stock. Furthermore, CEO Amit Kornhauser is the owner of 0.7% of the company's shares.
We did some more digging and found that 10 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
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.
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. 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.
Most consider insider ownership a positive because it can indicate 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 a reasonable proportion of Navitas Petroleum, Limited Partnership. Insiders have a ₪614m stake in this ₪2.7b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
The general public-- including retail investors -- own 32% stake in the company, and hence can't easily be ignored. 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.
It's always worth thinking about the different groups who own shares in a company. But to understand Navitas Petroleum Limited Partnership better, we need to consider many other factors. For instance, we've identified 2 warning signs for Navitas Petroleum Limited Partnership that you should be aware of.
Of course this may not be the best stock to buy. So take a peek at this free 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.
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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.