Stock Analysis
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- TSE:8566
Individual investors among Ricoh Leasing Company, Ltd.'s (TSE:8566) largest shareholders, saw gain in holdings value after stock jumped 5.6% last week
Key Insights
- Ricoh Leasing Company's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
- 54% of the business is held by the top 2 shareholders
- Institutions own 32% of Ricoh Leasing Company
A look at the shareholders of Ricoh Leasing Company, Ltd. (TSE:8566) can tell us which group is most powerful. The group holding the most number of shares in the company, around 34% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As a result, individual investors collectively scored the highest last week as the company hit JP¥169b market cap following a 5.6% gain in the stock.
Let's take a closer look to see what the different types of shareholders can tell us about Ricoh Leasing Company.
Check out our latest analysis for Ricoh Leasing Company
What Does The Institutional Ownership Tell Us About Ricoh Leasing Company?
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.
As you can see, institutional investors have a fair amount of stake in Ricoh Leasing Company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Ricoh Leasing Company's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Ricoh Leasing Company. The company's largest shareholder is Ricoh Company, Ltd., with ownership of 34%. With 20% and 2.1% of the shares outstanding respectively, Mizuho Leasing Company, Limited Asset Management Arm and Nomura Asset Management Co., Ltd. are the second and third largest shareholders.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 54% stake.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Ricoh Leasing Company
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. 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 data suggests that insiders own under 1% of Ricoh Leasing Company, Ltd. in their own names. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around JP¥11m worth of shares (at current prices). Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 34% stake in the company, and hence can't easily be ignored. 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
It appears to us that public companies own 34% of Ricoh Leasing Company. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Ricoh Leasing Company better, we need to consider many other factors. For example, we've discovered 3 warning signs for Ricoh Leasing Company (1 is a bit unpleasant!) that you should be aware of before investing here.
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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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:8566
Ricoh Leasing Company
Engages in leasing, investment, and financial service businesses in Japan.