While institutions invested in Precision Tsugami (China) Corporation Limited (HKG:1651) benefited from last week's 3.7% gain, public companies stood to gain the most

Key Insights

• The considerable ownership by public companies in Precision Tsugami (China) indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Tsugami Corporation with a 66% stake
• Institutional ownership in Precision Tsugami (China) is 17%

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To get a sense of who is truly in control of Precision Tsugami (China) Corporation Limited (HKG:1651), it is important to understand the ownership structure of the business. With 66% stake, public companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 3.7% increase in the stock price last week, public companies profited the most, but institutions who own 17% 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)?

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.

We can see that Precision Tsugami (China) does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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.

Hedge funds don't have many shares 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 it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Precision Tsugami (China)

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.

Our data suggests that insiders own under 1% of Precision Tsugami (China) Corporation Limited in their own names. Keep in mind that it's a big company, and the insiders own HK$5.5m 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 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Precision Tsugami (China). While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 2 warning signs we've spotted with Precision Tsugami (China) (including 1 which is significant) .

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.