Public companies are Mitsubishi Logisnext Co., Ltd.'s (TSE:7105) biggest owners and were hit after market cap dropped JP¥11b

Key Insights

• The considerable ownership by public companies in Mitsubishi Logisnext indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Mitsubishi Heavy Industries, Ltd. with a 65% stake
• 11% of Mitsubishi Logisnext is held by Institutions

A look at the shareholders of Mitsubishi Logisnext Co., Ltd. (TSE:7105) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are public companies with 70% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, public companies endured the biggest losses as the stock fell by 7.9%.

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

Check out our latest analysis for Mitsubishi Logisnext

What Does The Institutional Ownership Tell Us About Mitsubishi Logisnext?

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.

Mitsubishi Logisnext already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Mitsubishi Logisnext, (below). Of course, keep in mind that there are other factors to consider, too.

Mitsubishi Logisnext is not owned by hedge funds. Mitsubishi Heavy Industries, Ltd. is currently the company's largest shareholder with 65% of shares outstanding. This implies that they have majority interest control of the future of the company. With 4.4% and 2.2% of the shares outstanding respectively, GS Yuasa Corporation and Norges Bank Investment Management are the second and third largest shareholders.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Mitsubishi Logisnext

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 information suggests that Mitsubishi Logisnext Co., Ltd. insiders own under 1% of the company. It seems the board members have no more than JP¥71m worth of shares in the JP¥123b company. 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 18% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 70% of Mitsubishi Logisnext stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Mitsubishi Logisnext better, we need to consider many other factors. Be aware that Mitsubishi Logisnext is showing 3 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.