DYNAM JAPAN HOLDINGS Co., Ltd. (HKG:6889) insiders, who hold 58% of the firm would be disappointed by the recent pullback

Key Insights

• Significant insider control over DYNAM JAPAN HOLDINGS implies vested interests in company growth
• The largest shareholder of the company is Yoji Sato with a 50% stake
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in DYNAM JAPAN HOLDINGS Co., Ltd. (HKG:6889) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 58% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders as a group endured the highest losses after market cap fell by HK$536m.

Let's take a closer look to see what the different types of shareholders can tell us about DYNAM JAPAN HOLDINGS.

Check out our latest analysis for DYNAM JAPAN HOLDINGS

What Does The Lack Of Institutional Ownership Tell Us About DYNAM JAPAN HOLDINGS?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of DYNAM JAPAN HOLDINGS, for yourself, below.

Hedge funds don't have many shares in DYNAM JAPAN HOLDINGS. Yoji Sato is currently the company's largest shareholder with 50% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. For context, the second largest shareholder holds about 7.8% of the shares outstanding, followed by an ownership of 2.9% by the third-largest shareholder.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of DYNAM JAPAN HOLDINGS

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 most recent data indicates that insiders own the majority of DYNAM JAPAN HOLDINGS Co., Ltd.. This means they can collectively make decisions for the company. Given it has a market cap of HK$3.3b, that means they have HK$1.9b worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 38% ownership, the general public, mostly comprising of individual investors, have some degree of sway over DYNAM JAPAN HOLDINGS. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand DYNAM JAPAN HOLDINGS better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for DYNAM JAPAN HOLDINGS (of which 2 are a bit concerning!) you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.