ROYAL HOLDINGS Co., Ltd.'s (TSE:8179) biggest owners are retail investors who got richer after stock soared 9.7% last week

Key Insights

• The considerable ownership by retail investors in ROYAL HOLDINGS indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 49% of the company
• Institutional ownership in ROYAL HOLDINGS is 18%

Every investor in ROYAL HOLDINGS Co., Ltd. (TSE:8179) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 53% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, retail investors benefitted the most after the company's market cap rose by JP¥11b last week.

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

View our latest analysis for ROYAL HOLDINGS

What Does The Institutional Ownership Tell Us About ROYAL 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 ROYAL HOLDINGS. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 ROYAL HOLDINGS' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in ROYAL HOLDINGS. Our data shows that Sojitz Corporation is the largest shareholder with 20% of shares outstanding. Egashira Foundation, Endowment Arm is the second largest shareholder owning 5.0% of common stock, and Kilroy Kosan Co., Ltd holds about 3.3% of the company stock.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of ROYAL HOLDINGS

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own less than 1% of ROYAL HOLDINGS Co., Ltd.. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It seems the board members have no more than JP¥62m worth of shares in the JP¥125b company. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 53% of ROYAL HOLDINGS shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

It seems that Private Companies own 4.7%, of the ROYAL HOLDINGS stock. 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.

Public Company Ownership

It appears to us that public companies own 24% of ROYAL HOLDINGS. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand ROYAL 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.

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.