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- TSE:3387
create restaurants holdings inc.'s (TSE:3387) stock price dropped 5.1% last week; individual investors would not be happy
Key Insights
- The considerable ownership by individual investors in create restaurants holdings indicates that they collectively have a greater say in management and business strategy
- A total of 6 investors have a majority stake in the company with 51% ownership
- Institutional ownership in create restaurants holdings is 10%
To get a sense of who is truly in control of create restaurants holdings inc. (TSE:3387), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual investors with 43% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
As market cap fell to JP¥319b last week, individual investors would have faced the highest losses than any other shareholder groups of the company.
Let's delve deeper into each type of owner of create restaurants holdings, beginning with the chart below.
View our latest analysis for create restaurants holdings
What Does The Institutional Ownership Tell Us About create restaurants holdings?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in create restaurants holdings. 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 create restaurants holdings' earnings history below. Of course, the future is what really matters.
create restaurants holdings is not owned by hedge funds. The company's largest shareholder is K.K. Goto Kokusai Shogyo Kenkyusho, with ownership of 42%. Nomura Asset Management Co., Ltd. is the second largest shareholder owning 2.3% of common stock, and Haruhiko Okamoto holds about 2.2% of the company stock. In addition, we found that Jun Kawai, the CEO has 0.9% of the shares allocated to their name.
We did some more digging and found that 6 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
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. 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 create restaurants holdings
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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.
We can report that insiders do own shares in create restaurants holdings inc.. The insiders have a meaningful stake worth JP¥14b. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.
General Public Ownership
The general public, who are usually individual investors, hold a 43% stake in create restaurants holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
We can see that Private Companies own 42%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand create restaurants holdings better, we need to consider many other factors.
Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.
Valuation is complex, but we're here to simplify it.
Discover if create restaurants holdings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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:3387
create restaurants holdings
Plans, develops, and manages food courts, izakaya bars, dinner-time restaurants, and bakeries in Japan.
Adequate balance sheet with acceptable track record.
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