Here's What Millicom International Cellular S.A.'s (NASDAQ:TIGO) Shareholder Ownership Structure Looks Like

By
Simply Wall St
Published
November 11, 2021
NasdaqGS:TIGO
Source: Shutterstock

Every investor in Millicom International Cellular S.A. (NASDAQ:TIGO) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

Millicom International Cellular is a pretty big company. It has a market capitalization of US$3.5b. Normally institutions would own a significant portion of a company this size. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Millicom International Cellular.

See our latest analysis for Millicom International Cellular

ownership-breakdown
NasdaqGS:TIGO Ownership Breakdown November 12th 2021

What Does The Institutional Ownership Tell Us About Millicom International Cellular?

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.

As you can see, institutional investors have a fair amount of stake in Millicom International Cellular. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Millicom International Cellular's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqGS:TIGO Earnings and Revenue Growth November 12th 2021

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Millicom International Cellular. Looking at our data, we can see that the largest shareholder is Swedbank Robur Fonder AB with 19% of shares outstanding. Dodge & Cox is the second largest shareholder owning 10.0% of common stock, and AMF Fonder AB holds about 6.2% of the company stock.

A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Millicom International Cellular

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Our information suggests that Millicom International Cellular S.A. insiders own under 1% of the company. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own US$15m worth of shares. 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, with a 35% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Millicom International Cellular has 1 warning sign we think 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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