Takeuchi Mfg. Co., Ltd.'s (TSE:6432) market cap dropped JP¥8.6b last week; individual investors who hold 44% were hit as were institutions

Key Insights

• Significant control over Takeuchi Mfg by individual investors implies that the general public has more power to influence management and governance-related decisions
• A total of 16 investors have a majority stake in the company with 50% ownership
• Insiders own 21% of Takeuchi Mfg

To get a sense of who is truly in control of Takeuchi Mfg. Co., Ltd. (TSE:6432), it is important to understand the ownership structure of the business. With 44% stake, individual investors 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.

While the holdings of individual investors took a hit after last week’s 3.6% price drop, institutions with their 35% holdings also suffered.

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

See our latest analysis for Takeuchi Mfg

What Does The Institutional Ownership Tell Us About Takeuchi 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 Takeuchi 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 Takeuchi Mfg's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Takeuchi Mfg. The company's CEO Toshiya Takeuchi is the largest shareholder with 16% of shares outstanding. With 3.8% and 3.2% of the shares outstanding respectively, Tokyo Small and Medium Business Investment & Consultation Co., Ltd. and Takeuchi Ikuei Scholarship Foundation, Endowment Arm are the second and third largest shareholders.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 16 shareholders, meaning that no single shareholder has a majority interest in the ownership.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Takeuchi 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 insiders own a significant proportion of Takeuchi Mfg. Co., Ltd.. Insiders own JP¥48b worth of shares in the JP¥230b company. That's quite meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. 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 44% stake in Takeuchi Mfg. 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.

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. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Takeuchi Mfg (of which 2 are significant!) you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.