Institutions profited after The Yamanashi Chuo Bank,Ltd.'s (TSE:8360) market cap rose JP¥11b last week but retail investors profited the most

Key Insights

• The considerable ownership by retail investors in Yamanashi Chuo BankLtd indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 41% of the company
• Institutional ownership in Yamanashi Chuo BankLtd is 35%

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Every investor in The Yamanashi Chuo Bank,Ltd. (TSE:8360) 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 retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While retail investors were the group that reaped the most benefits after last week’s 11% price gain, institutions also received a 35% cut.

In the chart below, we zoom in on the different ownership groups of Yamanashi Chuo BankLtd.

View our latest analysis for Yamanashi Chuo BankLtd

What Does The Institutional Ownership Tell Us About Yamanashi Chuo BankLtd?

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 Yamanashi Chuo BankLtd. 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 Yamanashi Chuo BankLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Yamanashi Chuo BankLtd is not owned by hedge funds. The company's largest shareholder is Neuberger Berman East Asia Limited, with ownership of 7.3%. For context, the second largest shareholder holds about 4.5% of the shares outstanding, followed by an ownership of 3.3% by the third-largest shareholder.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Yamanashi Chuo BankLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 The Yamanashi Chuo Bank,Ltd. in their own names. It appears that the board holds about JP¥597m worth of stock. This compares to a market capitalization of JP¥116b. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 58% of Yamanashi Chuo BankLtd shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Yamanashi Chuo BankLtd better, we need to consider many other factors. Be aware that Yamanashi Chuo BankLtd is showing 1 warning sign in our investment analysis , 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.