While institutions invested in Namura Shipbuilding Co., Ltd. (TSE:7014) benefited from last week's 8.6% gain, retail investors stood to gain the most

Key Insights

• The considerable ownership by retail investors in Namura Shipbuilding indicates that they collectively have a greater say in management and business strategy
• The top 21 shareholders own 51% of the company
• 25% of Namura Shipbuilding is held by Institutions

A look at the shareholders of Namura Shipbuilding Co., Ltd. (TSE:7014) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 53% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 8.6% increase in the stock price last week, retail investors profited the most, but institutions who own 25% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Namura Shipbuilding, beginning with the chart below.

See our latest analysis for Namura Shipbuilding

What Does The Institutional Ownership Tell Us About Namura Shipbuilding?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Namura Shipbuilding. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Namura Shipbuilding's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Namura Shipbuilding. Looking at our data, we can see that the largest shareholder is Nippon Steel Corporation with 7.2% of shares outstanding. In comparison, the second and third largest shareholders hold about 3.7% and 3.2% of the stock.

A closer look at our ownership figures suggests that the top 21 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Namura Shipbuilding

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.

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 most recent data indicates that insiders own less than 1% of Namura Shipbuilding Co., Ltd.. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It appears that the board holds about JP¥1.0b worth of stock. This compares to a market capitalization of JP¥145b. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

The general public -- including retail investors -- own 53% of Namura Shipbuilding. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Public Company Ownership

It appears to us that public companies own 19% of Namura Shipbuilding. 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:

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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Namura Shipbuilding you should know about.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.