Insiders were the biggest winners as Rapac Communication & Infrastructure Ltd's (TLV:RPAC) market cap grew by ₪115m last week

Key Insights

• Insiders appear to have a vested interest in Rapac Communication & Infrastructure's growth, as seen by their sizeable ownership
• 51% of the company is held by a single shareholder (Tanhum Oren)
• Institutional ownership in Rapac Communication & Infrastructure is 18%

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To get a sense of who is truly in control of Rapac Communication & Infrastructure Ltd (TLV:RPAC), it is important to understand the ownership structure of the business. With 53% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by ₪115m last week.

Let's delve deeper into each type of owner of Rapac Communication & Infrastructure, beginning with the chart below.

Check out our latest analysis for Rapac Communication & Infrastructure

What Does The Institutional Ownership Tell Us About Rapac Communication & Infrastructure?

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 Rapac Communication & Infrastructure. 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 Rapac Communication & Infrastructure's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Rapac Communication & Infrastructure. The company's largest shareholder is Tanhum Oren, with ownership of 51%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. In comparison, the second and third largest shareholders hold about 12% and 6.7% of the stock. Furthermore, CEO Nechemya Kind is the owner of 1.0% of the company's shares.

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. 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 Rapac Communication & Infrastructure

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 Rapac Communication & Infrastructure Ltd. This means they can collectively make decisions for the company. So they have a ₪586m stake in this ₪1.1b business. 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

With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Rapac Communication & Infrastructure. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 12%, private equity firms could influence the Rapac Communication & Infrastructure board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Rapac Communication & Infrastructure better, we need to consider many other factors. For instance, we've identified 1 warning sign for Rapac Communication & Infrastructure that 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.