Individual investors are Fudo Tetra Corporation's (TSE:1813) biggest owners and were rewarded after market cap rose by JP¥4.9b last week

Key Insights

• The considerable ownership by individual investors in Fudo Tetra indicates that they collectively have a greater say in management and business strategy
• A total of 11 investors have a majority stake in the company with 51% ownership
• 15% of Fudo Tetra is held by Institutions

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Every investor in Fudo Tetra Corporation (TSE:1813) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 45% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, individual investors collectively scored the highest last week as the company hit JP¥41b market cap following a 14% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Fudo Tetra.

Check out our latest analysis for Fudo Tetra

What Does The Institutional Ownership Tell Us About Fudo Tetra?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Fudo Tetra. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Fudo Tetra's earnings history below. Of course, the future is what really matters.

Our data indicates that hedge funds own 30% of Fudo Tetra. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Effissimo Capital Management Pte Ltd. is currently the largest shareholder, with 30% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder owning 2.9% of common stock, and Nippon Steel Corporation holds about 2.7% of the company stock.

A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

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. 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 Fudo Tetra

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Shareholders would probably be interested to learn that insiders own shares in Fudo Tetra Corporation. In their own names, insiders own JP¥638m worth of stock in the JP¥41b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 45% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Fudo Tetra. 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

It appears to us that public companies own 4.9% of Fudo Tetra. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Fudo Tetra (of which 1 shouldn't be ignored!) you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.