Sega Sammy Holdings Inc. (TSE:6460) surges 4.2%; retail investors who own 46% shares profited along with insiders
Key Insights
- Significant control over Sega Sammy Holdings by retail investors implies that the general public has more power to influence management and governance-related decisions
- 50% of the business is held by the top 18 shareholders
- 31% of Sega Sammy Holdings is held by insiders
Every investor in Sega Sammy Holdings Inc. (TSE:6460) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 46% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Retail investors gained the most after market cap touched JP¥626b last week, while insiders who own 31% also benefitted.
In the chart below, we zoom in on the different ownership groups of Sega Sammy Holdings.
See our latest analysis for Sega Sammy Holdings
What Does The Institutional Ownership Tell Us About Sega Sammy Holdings?
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.
Sega Sammy Holdings 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 Sega Sammy Holdings' earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Sega Sammy Holdings. Hajime Satomi is currently the largest shareholder, with 28% of shares outstanding. With 3.0% and 2.9% of the shares outstanding respectively, Nomura Asset Management Co., Ltd. and The Vanguard Group, Inc. are the second and third largest shareholders. Additionally, the company's CEO Haruki Satomi directly holds 1.8% of the total shares outstanding.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 18 shareholders, meaning that no single shareholder has a majority interest in the ownership.
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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Sega Sammy Holdings
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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 insiders own a significant proportion of Sega Sammy Holdings Inc.. It is very interesting to see that insiders have a meaningful JP¥192b stake in this JP¥626b 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 46% stake in Sega Sammy Holdings. 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:
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 Sega Sammy Holdings 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.
About TSE:6460
Sega Sammy Holdings
Through its subsidiaries, engages in the game machine, entertainment content, and resort businesses.
Excellent balance sheet second-rate dividend payer.