Hirofumi Hayashi INTLOOP Inc.'s (TSE:9556) CEO is the most bullish insider, and their stock value gained 10%last week

Key Insights

• Insiders appear to have a vested interest in INTLOOP's growth, as seen by their sizeable ownership
• 72% of the company is held by a single shareholder (Hirofumi Hayashi)
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

A look at the shareholders of INTLOOP Inc. (TSE:9556) can tell us which group is most powerful. The group holding the most number of shares in the company, around 72% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by JP¥2.7b last week.

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

Check out our latest analysis for INTLOOP

What Does The Institutional Ownership Tell Us About INTLOOP?

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.

We can see that INTLOOP does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see INTLOOP's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in INTLOOP. With a 72% stake, CEO Hirofumi Hayashi is the largest shareholder. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. Meiji Yasuda Asset Management Company Ltd. is the second largest shareholder owning 1.1% of common stock, and Mitsubishi UFJ Asset Management Co., Ltd. holds about 1.0% of the company stock.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of INTLOOP

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

It seems that insiders own more than half the INTLOOP Inc. stock. This gives them a lot of power. That means they own JP¥20b worth of shares in the JP¥28b company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 22% stake in the company, and hence can't easily be ignored. 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. Be aware that INTLOOP is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.