Moriya Transportation Engineering and Manufacturing Co.,Ltd.'s (TSE:6226) most bullish insider, CEO Sadao Moriya must be pleased with the recent 18% gain

Key Insights

• Significant insider control over Moriya Transportation Engineering and ManufacturingLtd implies vested interests in company growth
• 66% of the company is held by a single shareholder (Sadao Moriya)
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of Moriya Transportation Engineering and Manufacturing Co.,Ltd. (TSE:6226), it is important to understand the ownership structure of the business. With 66% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 18% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Moriya Transportation Engineering and ManufacturingLtd.

See our latest analysis for Moriya Transportation Engineering and ManufacturingLtd

What Does The Institutional Ownership Tell Us About Moriya Transportation Engineering and ManufacturingLtd?

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 Moriya Transportation Engineering and ManufacturingLtd. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Moriya Transportation Engineering and ManufacturingLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Moriya Transportation Engineering and ManufacturingLtd. The company's CEO Sadao Moriya is the largest shareholder with 66% of shares outstanding. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers. Bank of Yokohama Ltd., Asset Management Arm is the second largest shareholder owning 2.2% of common stock, and SBI Holdings Inc., Asset Management Arm holds about 2.1% of the company stock.

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. 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 Moriya Transportation Engineering and ManufacturingLtd

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 information suggests that insiders own more than half of Moriya Transportation Engineering and Manufacturing Co.,Ltd.. This gives them effective control of the company. So they have a JP¥26b stake in this JP¥40b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 21% stake in Moriya Transportation Engineering and ManufacturingLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. Case in point: We've spotted 1 warning sign for Moriya Transportation Engineering and ManufacturingLtd you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.