Stock Analysis

Do Institutions Own Hirose Tusyo Inc. (TYO:7185) Shares?

TSE:7185
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If you want to know who really controls Hirose Tusyo Inc. (TYO:7185), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

Hirose Tusyo is not a large company by global standards. It has a market capitalization of JP¥12b, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions don't own many shares in the company. Let's delve deeper into each type of owner, to discover more about Hirose Tusyo.

Check out our latest analysis for Hirose Tusyo

ownership-breakdown
JASDAQ:7185 Ownership Breakdown December 25th 2020

What Does The Lack Of Institutional Ownership Tell Us About Hirose Tusyo?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Hirose Tusyo, for yourself, below.

earnings-and-revenue-growth
JASDAQ:7185 Earnings and Revenue Growth December 25th 2020

We note that hedge funds don't have a meaningful investment in Hirose Tusyo. Our data shows that Toshikazu Hosoai is the largest shareholder with 9.8% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.9% and 6.8%, of the shares outstanding, respectively. Furthermore, CEO Yusaku Noichi is the owner of 4.5% of the company's shares.

On further inspection, we found that more than half the company's shares are owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Hirose Tusyo

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.

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.

It seems that insiders own more than half the Hirose Tusyo Inc. stock. This gives them a lot of power. So they have a JP¥6.3b stake in this JP¥12b business. 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 holds a 46% stake in Hirose Tusyo. 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.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Hirose Tusyo , and understanding them should be part of your investment process.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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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