The recent 15% gain must have brightened CEO Sadao Moriya's week, Moriya Transportation Engineering and Manufacturing Co.,Ltd.'s (TSE:6226) most bullish insider

Key Insights

• Insiders appear to have a vested interest in Moriya Transportation Engineering and ManufacturingLtd's growth, as seen by their sizeable ownership
• Sadao Moriya owns 65% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

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If you want to know who really controls Moriya Transportation Engineering and Manufacturing Co.,Ltd. (TSE:6226), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 66% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by JP¥8.3b last week.

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

Moriya Transportation Engineering and ManufacturingLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Moriya Transportation Engineering and ManufacturingLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Moriya Transportation Engineering and ManufacturingLtd. The company's CEO Sadao Moriya is the largest shareholder with 65% of shares outstanding. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. Meanwhile, the second and third largest shareholders, hold 2.1% and 2.1%, of the shares outstanding, respectively.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Moriya Transportation Engineering and ManufacturingLtd

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems that insiders own more than half the Moriya Transportation Engineering and Manufacturing Co.,Ltd. stock. This gives them a lot of power. Given it has a market cap of JP¥65b, that means they have JP¥43b worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over 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.