TOKYO KEIKI INC.'s (TSE:7721) market cap touched JP¥49b last week, benefiting both individual investors who own 51% as well as institutions

Key Insights

• The considerable ownership by individual investors in TOKYO KEIKI indicates that they collectively have a greater say in management and business strategy
• A total of 23 investors have a majority stake in the company with 50% ownership
• Institutions own 30% of TOKYO KEIKI

To get a sense of who is truly in control of TOKYO KEIKI INC. (TSE:7721), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 21% increase in the stock price last week, individual investors profited the most, but institutions who own 30% stock also stood to gain from the increase.

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

See our latest analysis for TOKYO KEIKI

What Does The Institutional Ownership Tell Us About TOKYO KEIKI?

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.

TOKYO KEIKI already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 TOKYO KEIKI, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in TOKYO KEIKI. Looking at our data, we can see that the largest shareholder is Tokyo Keiki Inc, Association with 6.9% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.3% and 4.6%, of the shares outstanding, respectively.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 23 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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of TOKYO KEIKI

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

We can report that insiders do own shares in TOKYO KEIKI INC.. It has a market capitalization of just JP¥49b, and insiders have JP¥1.1b worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public -- including retail investors -- own 51% of TOKYO KEIKI. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand TOKYO KEIKI better, we need to consider many other factors. Take risks for example - TOKYO KEIKI has 1 warning sign we think you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.