While institutions invested in Torishima Pump Mfg. Co., Ltd. (TSE:6363) benefited from last week's 11% gain, individual investors stood to gain the most

Key Insights

• Torishima Pump Mfg's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 50% of the business is held by the top 17 shareholders
• Institutions own 43% of Torishima Pump Mfg

If you want to know who really controls Torishima Pump Mfg. Co., Ltd. (TSE:6363), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 45% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While individual investors were the group that reaped the most benefits after last week’s 11% price gain, institutions also received a 43% cut.

Let's take a closer look to see what the different types of shareholders can tell us about Torishima Pump Mfg.

Check out our latest analysis for Torishima Pump Mfg

What Does The Institutional Ownership Tell Us About Torishima Pump Mfg?

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.

We can see that Torishima Pump Mfg does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Torishima Pump Mfg's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Torishima Pump Mfg. Harada Memorial Foundation, Endowment Arm is currently the company's largest shareholder with 11% of shares outstanding. With 4.8% and 4.8% of the shares outstanding respectively, Resona Bank Ltd., Asset Management Arm and Sumitomo Mitsui Financial Group Inc., Asset Management Arm are the second and third largest shareholders.

After doing some more digging, we found that the top 17 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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 Torishima Pump Mfg

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. 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 Torishima Pump Mfg. Co., Ltd. in their own names. It appears that the board holds about JP¥459m worth of stock. This compares to a market capitalization of JP¥77b. 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-- including retail investors -- own 45% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

We can see that public companies hold 8.3% of the Torishima Pump Mfg shares on issue. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Torishima Pump Mfg better, we need to consider many other factors. Take risks for example - Torishima Pump Mfg has 3 warning signs (and 1 which is significant) we think 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.