After losing 12% in the past year, Idemitsu Kosan Co.,Ltd. (TSE:5019) institutional owners must be relieved by the recent gain

Key Insights

• Institutions' substantial holdings in Idemitsu KosanLtd implies that they have significant influence over the company's share price
• The top 11 shareholders own 51% of the company
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

Our free stock report includes 3 warning signs investors should be aware of before investing in Idemitsu KosanLtd. Read for free now.

If you want to know who really controls Idemitsu Kosan Co.,Ltd. (TSE:5019), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 38% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Institutional investors would probably welcome last week's 3.5% increase in the share price after a year of 12% losses as a sign that returns may to begin trending higher.

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

Check out our latest analysis for Idemitsu KosanLtd

What Does The Institutional Ownership Tell Us About Idemitsu KosanLtd?

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.

We can see that Idemitsu KosanLtd does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Idemitsu KosanLtd'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 Idemitsu KosanLtd. Nissho Kosan Company Ltd is currently the largest shareholder, with 11% of shares outstanding. With 9.4% and 8.3% of the shares outstanding respectively, Saudi Arabian Oil Company and Idemitsu Museum of Arts Foundation, Endowment Arm are the second and third largest shareholders.

A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

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 Idemitsu KosanLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 some shares in Idemitsu Kosan Co.,Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own JP¥20b 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, who are usually individual investors, hold a 33% stake in Idemitsu KosanLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 13%, of the company's shares. 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

We can see that public companies hold 9.4% of the Idemitsu KosanLtd shares on issue. 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 Idemitsu KosanLtd better, we need to consider many other factors. To that end, you should be aware of the 3 warning signs we've spotted with Idemitsu KosanLtd .

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.