Institutional investors are BayCurrent Consulting, Inc.'s (TSE:6532) biggest bettors and were rewarded after last week's JP¥75b market cap gain

Key Insights

• Given the large stake in the stock by institutions, BayCurrent Consulting's stock price might be vulnerable to their trading decisions
• 51% of the business is held by the top 12 shareholders
• Insider ownership in BayCurrent Consulting is 14%

If you want to know who really controls BayCurrent Consulting, Inc. (TSE:6532), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 56% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And as as result, institutional investors reaped the most rewards after the company's stock price gained 8.0% last week. One-year return to shareholders is currently 100% and last week’s gain was the icing on the cake.

In the chart below, we zoom in on the different ownership groups of BayCurrent Consulting.

View our latest analysis for BayCurrent Consulting

What Does The Institutional Ownership Tell Us About BayCurrent Consulting?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

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

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. BayCurrent Consulting is not owned by hedge funds. Arata Eguchi is currently the largest shareholder, with 10% of shares outstanding. With 7.6% and 5.4% of the shares outstanding respectively, FMR LLC and BlackRock, Inc. are the second and third largest shareholders.

After doing some more digging, we found that the top 12 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of BayCurrent Consulting

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.

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 BayCurrent Consulting, Inc.. It is very interesting to see that insiders have a meaningful JP¥141b stake in this JP¥1.0t business. 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

With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over BayCurrent Consulting. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 1 warning sign for BayCurrent Consulting that you should be aware of before investing here.

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.