Public companies are Rise Consulting Group, Inc.'s (TSE:9168) biggest owners and were rewarded after market cap rose by JP¥2.7b last week

Key Insights

• The considerable ownership by public companies in Rise Consulting Group indicates that they collectively have a greater say in management and business strategy
• 52% of the business is held by the top 4 shareholders
• 31% of Rise Consulting Group is held by Institutions

We've discovered 1 warning sign about Rise Consulting Group. View them for free.

If you want to know who really controls Rise Consulting Group, Inc. (TSE:9168), 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 public companies with 33% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, public companies were the biggest beneficiaries of last week’s 12% gain.

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

View our latest analysis for Rise Consulting Group

What Does The Institutional Ownership Tell Us About Rise Consulting Group?

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.

Rise Consulting Group 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. 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 Rise Consulting Group's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Rise Consulting Group. The company's largest shareholder is SHIFT Inc., with ownership of 33%. For context, the second largest shareholder holds about 9.0% of the shares outstanding, followed by an ownership of 5.2% by the third-largest shareholder.

On looking further, we found that 52% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of 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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Rise Consulting Group

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.

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.

Shareholders would probably be interested to learn that insiders own shares in Rise Consulting Group, Inc.. In their own names, insiders own JP¥1.3b worth of stock in the JP¥25b company. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 31% stake in Rise Consulting 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.

Public Company Ownership

Public companies currently own 33% of Rise Consulting Group 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for Rise Consulting Group 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.