What types of investors own most of Bezeq The Israel Telecommunication Corp. Ltd (TLV: BEZQ)?

The large shareholder groups of Bezeq The Israel Telecommunication Corp. Ltd (TLV: BEZQ) have power over the company. Institutions often own shares in larger companies, and we would expect insiders to own a noticeable percentage of smaller ones. We also tend to see a decrease in the number of insiders in companies that were previously state-owned.

Bezeq The Israel Telecommunication is a pretty big company. It has a market capitalization of ₪ 13b. Normally, institutions would own a significant share of a company of this size. Looking at our data on ownership groups (below), it appears that institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Bezeq The Israel Telecommunication.

See our latest review for Bezeq The Israel Telecommunication

TASE: Distribution of ownership of BEZQ on December 8, 2021

What does institutional ownership tell us about Bezeq The Israel Telecommunication?

Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.

We can see that Bezeq The Israel Telecommunication has institutional investors; and they own a large portion of the company’s stock. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Bezeq The Israel Telecommunication’s past revenue trajectory (below). Of course, keep in mind that there are other factors to consider as well.

profit and revenue growth
TASE: BEZQ Profits and Revenue Growth December 8, 2021

Hedge funds don’t have a lot of shares in Bezeq The Israel Telecommunication. The main shareholder of the company is B Communications Ltd, with a 27% stake. For context, the second largest shareholder owns around 3.1% of the outstanding shares, followed by 2.3% ownership by the third largest shareholder.

Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, which means that the company’s shares are widely disseminated and there is no dominant shareholder.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There is a little analyst coverage of the stock, but not a lot. There is therefore room for it to acquire more cover.

Insider Property of Bezeq The Israel Telecommunication

The definition of an insider may differ slightly from country to country, but board members still count. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own less than 1% of Bezeq The Israel Telecommunication Corp. Ltd. Keep in mind that this is a large company and insiders own 1.1 million yen of shares. The absolute value can be more important than the proportional part. Arguably recent purchases and sales are equally important to consider. You can click here to see if any Insiders have bought or sold.

General public property

The general public, who are usually individual investors, have a substantial 58% stake in Bezeq The Israel Telecommunication, which suggests that it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Public enterprise ownership

It seems to us that state-owned companies own 27% of Bezeq The Israel Telecommunication. It’s hard to say for sure, but it suggests that they have intertwined business interests. This can be a strategic issue, so it’s worth watching this space for changes in ownership.

Next steps:

I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. For example, we have identified 1 warning sign for Bezeq The Israel Telecommunication that you need to be aware of.

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

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.


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