Public companies in Mitsubishi Logisnext Co., Ltd. (TSE:7105) are its biggest bettors, and their bets paid off as stock gained 5.6% last week

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
• Institutional ownership in Mitsubishi Logisnext is 12%

A look at the shareholders of Mitsubishi Logisnext Co., Ltd. (TSE:7105) can tell us which group is most powerful. The group holding the most number of shares in the company, around 70% to be precise, is public companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, public companies were the biggest beneficiaries of last week’s 5.6% gain.

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

Check out our latest analysis for Mitsubishi Logisnext

What Does The Institutional Ownership Tell Us About Mitsubishi Logisnext?

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.

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. 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 Mitsubishi Logisnext's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Mitsubishi Logisnext. The company's largest shareholder is Mitsubishi Heavy Industries, Ltd., with ownership of 65%. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 4.4% of the shares outstanding, followed by an ownership of 2.2% by the third-largest shareholder.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 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.

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.

Our data suggests that insiders own under 1% of Mitsubishi Logisnext Co., Ltd. in their own names. It seems the board members have no more than JP¥30m worth of shares in the JP¥152b 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 15% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

Public companies currently own 70% of Mitsubishi Logisnext stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 2 warning signs for Mitsubishi Logisnext that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.

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