Stock Analysis

Mitsubishi HC Capital Inc. (TSE:8593) stock most popular amongst public companies who own 44%, while individual investors hold 36%

Published
TSE:8593

Key Insights

  • Mitsubishi HC Capital's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
  • 50% of the business is held by the top 6 shareholders
  • Institutions own 20% of Mitsubishi HC Capital

A look at the shareholders of Mitsubishi HC Capital Inc. (TSE:8593) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are public companies with 44% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors, on the other hand, account for 36% of the company's stockholders.

In the chart below, we zoom in on the different ownership groups of Mitsubishi HC Capital.

Check out our latest analysis for Mitsubishi HC Capital

TSE:8593 Ownership Breakdown September 9th 2024

What Does The Institutional Ownership Tell Us About Mitsubishi HC Capital?

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.

Mitsubishi HC Capital already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Mitsubishi HC Capital, (below). Of course, keep in mind that there are other factors to consider, too.

TSE:8593 Earnings and Revenue Growth September 9th 2024

Hedge funds don't have many shares in Mitsubishi HC Capital. Looking at our data, we can see that the largest shareholder is Mitsubishi UFJ Financial Group, Inc. with 21% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 18% and 4.1%, of the shares outstanding, respectively.

On further inspection, we found that more than half the company's shares are owned by the top 6 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. 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 Mitsubishi HC Capital

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.

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.

Our information suggests that Mitsubishi HC Capital Inc. insiders own under 1% of the company. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own JP¥114m worth of shares. 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 36% 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 44% of Mitsubishi HC Capital. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Mitsubishi HC Capital (including 1 which can't be ignored) .

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.