While individual investors own 26% of JAPAN POST BANK Co., Ltd. (TSE:7182), public companies are its largest shareholders with 62% ownership

Key Insights

• The considerable ownership by public companies in JAPAN POST BANK indicates that they collectively have a greater say in management and business strategy
• 62% of the company is held by a single shareholder (Japan Post Holdings Co., Ltd.)
• Institutional ownership in JAPAN POST BANK is 12%

To get a sense of who is truly in control of JAPAN POST BANK Co., Ltd. (TSE:7182), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 62% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, individual investors make up 26% of the company’s shareholders.

Let's delve deeper into each type of owner of JAPAN POST BANK, beginning with the chart below.

See our latest analysis for JAPAN POST BANK

What Does The Institutional Ownership Tell Us About JAPAN POST BANK?

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.

As you can see, institutional investors have a fair amount of stake in JAPAN POST BANK. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see JAPAN POST BANK's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in JAPAN POST BANK. Japan Post Holdings Co., Ltd. is currently the company's largest shareholder with 62% of shares outstanding. This implies that they have majority interest control of the future of the company. The second and third largest shareholders are Nomura Asset Management Co., Ltd. and The Vanguard Group, Inc., with an equal amount of shares to their name at 1.6%.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of JAPAN POST BANK

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data suggests that insiders own under 1% of JAPAN POST BANK Co., Ltd. in their own names. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own JP¥18b worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over JAPAN POST BANK. 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

Public companies currently own 62% of JAPAN POST BANK stock. 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. Take risks for example - JAPAN POST BANK has 1 warning sign we think you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.