Bezeq The Israel Telecommunication Corp. Ltd's (TLV:BEZQ) market cap dropped ₪507m last week; individual investors who hold 40% were hit as were institutions

Key Insights

• Significant control over Bezeq The Israel Telecommunication by retail investors implies that the general public has more power to influence management and governance-related decisions
• The top 7 shareholders own 51% of the company
• 33% of Bezeq The Israel Telecommunication is held by Institutions

A look at the shareholders of Bezeq The Israel Telecommunication Corp. Ltd (TLV:BEZQ) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 40% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While the holdings of retail investors took a hit after last week’s 3.1% price drop, institutions with their 33% holdings also suffered.

Let's take a closer look to see what the different types of shareholders can tell us about Bezeq The Israel Telecommunication.

View our latest analysis for Bezeq The Israel Telecommunication

What Does The Institutional Ownership Tell Us About Bezeq The Israel Telecommunication?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Bezeq The Israel Telecommunication already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Bezeq The Israel Telecommunication's earnings history below. Of course, the future is what really matters.

Bezeq The Israel Telecommunication is not owned by hedge funds. B Communications Ltd. is currently the largest shareholder, with 27% of shares outstanding. The second and third largest shareholders are Shlomo Eliahu Holding Ltd, Asset Management Arm and Clal Pension And Gemel Ltd, with an equal amount of shares to their name at 6.5%.

We did some more digging and found that 7 of the top shareholders account for roughly 51% 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Bezeq The Israel Telecommunication

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 information suggests that Bezeq The Israel Telecommunication Corp. Ltd insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own ₪765k worth of shares. The absolute value might be more important than the proportional share. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 40% stake in Bezeq The Israel Telecommunication. 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.

Public Company Ownership

Public companies currently own 27% of Bezeq The Israel Telecommunication stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 2 warning signs for Bezeq The Israel Telecommunication that you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.