Institutional investors have a lot riding on Japan Elevator Service Holdings Co.,Ltd. (TSE:6544) with 50% ownership

Key Insights

• Significantly high institutional ownership implies Japan Elevator Service HoldingsLtd's stock price is sensitive to their trading actions
• 51% of the business is held by the top 11 shareholders
• 22% of Japan Elevator Service HoldingsLtd is held by insiders

A look at the shareholders of Japan Elevator Service Holdings Co.,Ltd. (TSE:6544) can tell us which group is most powerful. The group holding the most number of shares in the company, around 50% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, institutional investors ended up benefitting the most after the company hit JP¥267b in market cap. One-year return to shareholders is currently 38% and last week’s gain was the icing on the cake.

In the chart below, we zoom in on the different ownership groups of Japan Elevator Service HoldingsLtd.

Check out our latest analysis for Japan Elevator Service HoldingsLtd

What Does The Institutional Ownership Tell Us About Japan Elevator Service HoldingsLtd?

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.

As you can see, institutional investors have a fair amount of stake in Japan Elevator Service HoldingsLtd. 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 Japan Elevator Service HoldingsLtd, (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. Hedge funds don't have many shares in Japan Elevator Service HoldingsLtd. With a 22% stake, CEO Katsushi Ishida is the largest shareholder. Meanwhile, the second and third largest shareholders, hold 8.0% and 3.9%, of the shares outstanding, respectively.

After doing some more digging, we found that the top 11 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Japan Elevator Service HoldingsLtd

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 information suggests that insiders maintain a significant holding in Japan Elevator Service Holdings Co.,Ltd.. It is very interesting to see that insiders have a meaningful JP¥60b stake in this JP¥267b 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

The general public, who are usually individual investors, hold a 26% stake in Japan Elevator Service HoldingsLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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 Japan Elevator Service HoldingsLtd that you should be aware of before investing here.

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.