The recent JP¥3.3b market cap decrease is likely to have disappointed insiders invested in JAPAN Creative Platform Group Co., Ltd. (TSE:7814)

Key Insights

• Significant insider control over JAPAN Creative Platform Group implies vested interests in company growth
• The top 6 shareholders own 50% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of JAPAN Creative Platform Group Co., Ltd. (TSE:7814) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 50% ownership. 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, insiders as a group endured the highest losses after market cap fell by JP¥3.3b.

Let's take a closer look to see what the different types of shareholders can tell us about JAPAN Creative Platform Group.

View our latest analysis for JAPAN Creative Platform Group

What Does The Lack Of Institutional Ownership Tell Us About JAPAN Creative Platform Group?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. JAPAN Creative Platform Group might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Hedge funds don't have many shares in JAPAN Creative Platform Group. Ryuichi Suzuki is currently the company's largest shareholder with 36% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.9% and 3.0% of the stock. Furthermore, CEO Ichiro Fujita is the owner of 1.1% of the company's shares.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 JAPAN Creative Platform Group

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.

It seems insiders own a significant proportion of JAPAN Creative Platform Group Co., Ltd.. Insiders own JP¥11b worth of shares in the JP¥23b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 42% stake in JAPAN Creative Platform Group. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand JAPAN Creative Platform Group better, we need to consider many other factors. Take risks for example - JAPAN Creative Platform Group has 2 warning signs (and 1 which is potentially serious) we think you should know about.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.