Institutions along with retail investors who hold considerable shares inKyoritsu Maintenance Co., Ltd. (TSE:9616) come under pressure; lose 4.1% of holdings value

Key Insights

• The considerable ownership by retail investors in Kyoritsu Maintenance indicates that they collectively have a greater say in management and business strategy
• 51% of the business is held by the top 19 shareholders
• 37% of Kyoritsu Maintenance is held by Institutions

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A look at the shareholders of Kyoritsu Maintenance Co., Ltd. (TSE:9616) can tell us which group is most powerful. With 49% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While institutions, who own 37% shares weren’t spared from last week’s JP¥10b market cap drop, retail investors as a group suffered the maximum losses

Let's delve deeper into each type of owner of Kyoritsu Maintenance, beginning with the chart below.

See our latest analysis for Kyoritsu Maintenance

What Does The Institutional Ownership Tell Us About Kyoritsu Maintenance?

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.

Kyoritsu Maintenance already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Kyoritsu Maintenance's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Kyoritsu Maintenance. Milestone Co., Ltd. is currently the company's largest shareholder with 11% of shares outstanding. The second and third largest shareholders are Sumitomo Mitsui Trust Asset Management Co., Ltd. and Kyoritsu International Foundation, Endowment Arm, with an equal amount of shares to their name at 5.2%.

After doing some more digging, we found that the top 19 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Kyoritsu Maintenance

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. 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.

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.

We can see that insiders own shares in Kyoritsu Maintenance Co., Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own JP¥6.8b worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 49% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

We can see that Private Companies own 11%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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 Kyoritsu Maintenance is showing 1 warning sign in our investment analysis , you should know about...

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.