What Type Of Shareholders Own The Most Number of Cellcom Israel Ltd. (TLV:CEL) Shares?

The big shareholder groups in Cellcom Israel Ltd. (TLV:CEL) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Cellcom Israel is a smaller company with a market capitalization of ₪2.5b, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about Cellcom Israel.

View our latest analysis for Cellcom Israel

What Does The Institutional Ownership Tell Us About Cellcom Israel?

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.

We can see that Cellcom Israel does have institutional investors; and they hold a good portion of the company's stock. 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 Cellcom Israel's earnings history below. Of course, the future is what really matters.

Cellcom Israel is not owned by hedge funds. Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria is currently the company's largest shareholder with 43% of shares outstanding. With 5.3% and 4.7% of the shares outstanding respectively, Migdal Insurance and Financial Holdings Ltd., Asset Management Arm and Menora Mivtachim Pensions & Gemel Ltd. are the second and third largest shareholders.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 53% stake.

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 I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Cellcom Israel

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.

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.

We can see that insiders own shares in Cellcom Israel Ltd.. It has a market capitalization of just ₪2.5b, and insiders have ₪127m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, with a 26% stake in the company, will not 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

Public companies currently own 43% of Cellcom Israel 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Cellcom Israel is showing 3 warning signs in our investment analysis , and 1 of those is concerning...

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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