individual investors who own 45% along with institutions invested in Bezeq The Israel Telecommunication Corp. Ltd (TLV:BEZQ) saw increase in their holdings value last week

Key Insights

• The considerable ownership by individual investors in Bezeq The Israel Telecommunication indicates that they collectively have a greater say in management and business strategy
• The top 13 shareholders own 50% of the company
• Institutions own 33% of Bezeq The Israel Telecommunication

We've discovered 2 warning signs about Bezeq The Israel Telecommunication. View them for free.

Every investor in Bezeq The Israel Telecommunication Corp. Ltd (TLV:BEZQ) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 45% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While individual investors were the group that reaped the most benefits after last week’s 4.7% price gain, institutions also received a 33% cut.

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

See our latest analysis for Bezeq The Israel Telecommunication

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

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Bezeq The Israel Telecommunication already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Bezeq The Israel Telecommunication's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Bezeq The Israel Telecommunication. B Communications Ltd. is currently the company's largest shareholder with 22% 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%.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 13 shareholders, meaning that no single shareholder has a majority interest in the ownership.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

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. 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 data suggests that insiders own under 1% of Bezeq The Israel Telecommunication Corp. Ltd in their own names. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own ₪757k worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 45% 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.

Public Company Ownership

We can see that public companies hold 22% of the Bezeq The Israel Telecommunication shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Bezeq The Israel Telecommunication better, we need to consider many other factors. Be aware that Bezeq The Israel Telecommunication is showing 2 warning signs in our investment analysis , you should know about...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.