Toyota Boshoku Corporation (TSE:3116) stock most popular amongst public companies who own 57%, while individual investors hold 27%

Key Insights

• The considerable ownership by public companies in Toyota Boshoku indicates that they collectively have a greater say in management and business strategy
• 51% of the business is held by the top 3 shareholders
• 13% of Toyota Boshoku is held by Institutions

If you want to know who really controls Toyota Boshoku Corporation (TSE:3116), then you'll have to look at the makeup of its share registry. We can see that public companies own the lion's share in the company with 57% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, individual investors make up 27% of the company’s shareholders.

Let's delve deeper into each type of owner of Toyota Boshoku, beginning with the chart below.

Check out our latest analysis for Toyota Boshoku

What Does The Institutional Ownership Tell Us About Toyota Boshoku?

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.

As you can see, institutional investors have a fair amount of stake in Toyota Boshoku. 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 Toyota Boshoku, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Toyota Boshoku. Toyota Motor Corporation is currently the company's largest shareholder with 43% of shares outstanding. With 4.3% and 4.0% of the shares outstanding respectively, Toyota Industries Corporation and NHK Spring Co., Ltd. are the second and third largest shareholders.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Toyota Boshoku

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our data suggests that insiders own under 1% of Toyota Boshoku Corporation in their own names. Keep in mind that it's a big company, and the insiders own JP¥2.2b worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 27% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

We can see that public companies hold 57% of the Toyota Boshoku 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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Toyota Boshoku you should know about.

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.