Hachshara Urban Renewal stock drops 40%: reasons for the collapse
Following an 18% decline in Friday's trading, the market value of Hachshara Urban Renewal has been cut by over 330 million shekels. Market participants suspect a major institutional investor may be behind the sell-off.
Why has the stock of Hachshara Urban Renewal fallen by 41% since the beginning of the month? The decline is sharp. Yesterday, the stock plummeted by about 25%, following a nearly 18% drop last Friday, wiping more than 330 million shekels from its market value, which now stands at 535 million shekels.
The share price is currently at 5.94 shekels, down from the 9.64 shekel threshold. At its peak last year, the stock reached 14.68 shekels. A 60% drop from its peak is significant for a company of this size.
What can be inferred from this collapse? Trading volume on Friday exceeded 4 million shekels, compared to a daily average of less than 200,000 shekels. Yesterday, turnover reached nearly 10 million shekels, suggesting a significant seller is behind the movement.
The company published reports yesterday, but the collapse began beforehand. There are no obvious negative events; conversely, Hachshara Urban Renewal recently signed a major construction agreement in Kiryat Yam. Consequently, capital market analysts estimate that a large institutional body intends to liquidate its holdings. This remains an estimate, and the exact cause of the decline is unclear. Currently, Hachsharat HaYishuv holds about 71% of the company's shares, Meitav holds 6.33%, Menora holds about 6%, and Ofer Nimrodi holds 1.4%.
At the beginning of 2026, the company moved to execute about 500 housing units, but reports indicate plans to reach execution volumes of over 2,000 units in 2027—a fourfold increase. The company currently has over 9,000 housing units with approved TABA (town planning scheme) and a backlog of 32,000 units at various stages of development.
The company recently reported progress on over 1,300 new units in two projects: The District Committee in Haifa approved a TABA for the 'Complex 16 Kiryat Eliezer' project (100% company share) for 430 units in Haifa, and the submission for objections of a TABA for 899 units (51% company share) in the Eli Cohen project in Ashkelon.
