Every investor in Millicom International Cellular SA (NASDAQ: TIGO) should know the most powerful shareholder groups. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. We also tend to see a decrease in insider ownership in companies that were previously owned by the state.
Millicom International Cellular is a fairly large company. It has a market capitalization of 3.5 billion US dollars. Normally, institutions would own a significant share of a company of this size. Looking at our data on ownership groups (below), it looks like institutional investors bought the company. Let’s take a closer look at what different types of shareholders can tell us about Millicom International Cellular.
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What does 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 businesses to have some institutions listed, especially if they are growing.
As you can see, institutional investors have a significant stake in Millicom International Cellular. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Millicom International Cellular’s profit history below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half of the business, so they can collectively wield significant power. Hedge funds don’t have a lot of stock in Millicom International Cellular. Looking at our data we can see that the largest shareholder is Swedbank Robur Fonder AB with 19% of the shares outstanding. Dodge & Cox is the second largest shareholder holding 10.0% of the common shares, and AMF Fonder AB owns approximately 6.2% of the shares of the company.
A closer look at our ownership figures suggests that the top 12 shareholders have a combined 51% ownership, implying that no shareholder has a majority.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. There are a lot of analysts covering the stock, so you can look at expected growth quite easily.
Insider property of Millicom International Cellular
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that insiders of Millicom International Cellular SA own less than 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, the insiders own shares worth US $ 15 million. It’s always good to see at least one insider property, but it may be worth checking out if those insiders have sold.
General public property
The general public, with 35% of the company’s capital, will not be easily ignored. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
While it is worth considering the different groups that own a business, 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.
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 day 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 shares 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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