While institutions invested in Precision Tsugami (China) Corporation Limited (HKG:1651) benefited from last week's 5.9% gain, public companies stood to gain the most

Key Insights

• Significant control over Precision Tsugami (China) by public companies implies that the general public has more power to influence management and governance-related decisions
• 66% of the company is held by a single shareholder (Tsugami Corporation)
• 20% of Precision Tsugami (China) is held by Institutions

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A look at the shareholders of Precision Tsugami (China) Corporation Limited (HKG:1651) can tell us which group is most powerful. With 66% stake, public companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 5.9% increase in the stock price last week, public companies profited the most, but institutions who own 20% stock also stood to gain from the increase.

In the chart below, we zoom in on the different ownership groups of Precision Tsugami (China).

Check out our latest analysis for Precision Tsugami (China)

What Does The Institutional Ownership Tell Us About Precision Tsugami (China)?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Precision Tsugami (China) already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Precision Tsugami (China), (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Precision Tsugami (China). Tsugami Corporation is currently the largest shareholder, with 66% of shares outstanding. This implies that they have majority interest control of the future of the company. The second and third largest shareholders are FMR LLC and Fidelity International Ltd, with an equal amount of shares to their name at 5.0%.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Precision Tsugami (China)

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 Precision Tsugami (China) Corporation Limited insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own HK$3.2m worth of shares. The absolute value might be more important than the proportional share. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

With a 15% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Precision Tsugami (China). 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 66% of the Precision Tsugami (China) 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 3 warning signs for Precision Tsugami (China) you should be aware of, and 1 of them doesn't sit too well with us.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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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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.