Kusuri No Aoki Holdings Co., Ltd.'s (TSE:3549) most bullish insider, CEO Hironori Aoki must be pleased with the recent 8.0% gain

Key Insights

• Insiders appear to have a vested interest in Kusuri No Aoki Holdings' growth, as seen by their sizeable ownership
• A total of 4 investors have a majority stake in the company with 54% ownership
• Institutional ownership in Kusuri No Aoki Holdings is 20%

Every investor in Kusuri No Aoki Holdings Co., Ltd. (TSE:3549) should be aware of the most powerful shareholder groups. With 40% stake, individual insiders possess the maximum shares in the company. 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 were the biggest beneficiaries of last week’s 8.0% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Kusuri No Aoki Holdings.

See our latest analysis for Kusuri No Aoki Holdings

What Does The Institutional Ownership Tell Us About Kusuri No Aoki Holdings?

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.

Kusuri No Aoki 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 Kusuri No Aoki Holdings' earnings history below. Of course, the future is what really matters.

Our data indicates that hedge funds own 9.7% of Kusuri No Aoki Holdings. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. With a 18% stake, CEO Hironori Aoki is the largest shareholder. In comparison, the second and third largest shareholders hold about 16% and 10.0% of the stock. Interestingly, the second-largest shareholder, Takanori Aoki is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 Kusuri No Aoki Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Kusuri No Aoki Holdings Co., Ltd.. Insiders own JP¥126b worth of shares in the JP¥316b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 15% stake in Kusuri No Aoki 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.

Public Company Ownership

We can see that public companies hold 15% of the Kusuri No Aoki Holdings shares on issue. 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.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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.