Institutions along with individual investors who hold considerable shares inKirin Holdings Company, Limited (TSE:2503) come under pressure; lose 3.6% of holdings value

Key Insights

• The considerable ownership by individual investors in Kirin Holdings Company indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 44% of the company
• 49% of Kirin Holdings Company is held by Institutions

Every investor in Kirin Holdings Company, Limited (TSE:2503) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 51% 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.

While the holdings of individual investors took a hit after last week’s 3.6% price drop, institutions with their 49% holdings also suffered.

Let's delve deeper into each type of owner of Kirin Holdings Company, beginning with the chart below.

See our latest analysis for Kirin Holdings Company

What Does The Institutional Ownership Tell Us About Kirin Holdings Company?

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 Kirin Holdings Company 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 Kirin Holdings Company's historic earnings and revenue below, but keep in mind there's always more to the story.

Kirin Holdings Company is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 6.9% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 4.6% and 3.9%, of the shares outstanding, respectively.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Kirin Holdings Company

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 most recent data indicates that insiders own less than 1% of Kirin Holdings Company, Limited. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own JP¥353m of stock. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public -- including retail investors -- own 51% of Kirin Holdings Company. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

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 be aware of the 1 warning sign we've spotted with Kirin Holdings Company .

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.