With 39% ownership in Mitsuuroko Group Holdings Co.,Ltd. (TSE:8131), institutional investors have a lot riding on the business

Key Insights

• Significantly high institutional ownership implies Mitsuuroko Group HoldingsLtd's stock price is sensitive to their trading actions
• 51% of the business is held by the top 8 shareholders
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Mitsuuroko Group Holdings Co.,Ltd. (TSE:8131) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are institutions with 39% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And as as result, institutional investors reaped the most rewards after the company's stock price gained 8.5% last week. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 35%.

Let's delve deeper into each type of owner of Mitsuuroko Group HoldingsLtd, beginning with the chart below.

See our latest analysis for Mitsuuroko Group HoldingsLtd

What Does The Institutional Ownership Tell Us About Mitsuuroko Group HoldingsLtd?

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 Mitsuuroko Group HoldingsLtd does have institutional investors; and they hold a good portion of the company's stock. 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 Mitsuuroko Group HoldingsLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Mitsuuroko Group HoldingsLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Meiji Yasuda Life Insurance Company, Asset Management Arm with 8.5% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.4% and 7.4% of the stock.

We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Mitsuuroko Group HoldingsLtd

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.

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 Mitsuuroko Group Holdings Co.,Ltd. insiders own under 1% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. It appears that the board holds about JP¥150m worth of stock. This compares to a market capitalization of JP¥100b. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

With a 34% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Mitsuuroko Group HoldingsLtd. 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.

Private Company Ownership

We can see that Private Companies own 14%, of the shares on issue. 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 11% of the Mitsuuroko Group HoldingsLtd shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for Mitsuuroko Group HoldingsLtd that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.