Institutional investors in Lifedrink Company, Inc. (TSE:2585) lost 7.4% last week but have reaped the benefits of longer-term growth

Key Insights

• Significantly high institutional ownership implies Lifedrink Company's stock price is sensitive to their trading actions
• 52% of the business is held by the top 9 shareholders
• Insiders own 15% of Lifedrink Company

If you want to know who really controls Lifedrink Company, Inc. (TSE:2585), then you'll have to look at the makeup of its share registry. With 34% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

No shareholder likes losing money on their investments, especially institutional investors who saw their holdings drop 7.4% in value last week. However, the 115% one-year return to shareholders may have helped lessen their pain. They should, however, be mindful of further losses in the future.

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

See our latest analysis for Lifedrink Company

What Does The Institutional Ownership Tell Us About Lifedrink Company?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Lifedrink 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. 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 Lifedrink Company's historic earnings and revenue below, but keep in mind there's always more to the story.

Lifedrink Company is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is CLSA Capital Partners with 11% of shares outstanding. Sunrise Capital KK is the second largest shareholder owning 9.5% of common stock, and JP Morgan Asset Management holds about 7.5% of the company stock. Furthermore, CEO Kuniaki Okano is the owner of 1.2% of the company's shares.

On further inspection, we found that more than half the company's shares are owned by the top 9 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Lifedrink Company

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.

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.

It seems insiders own a significant proportion of Lifedrink Company, Inc.. It has a market capitalization of just JP¥118b, and insiders have JP¥17b worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 32% 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.

Private Equity Ownership

With a stake of 20%, private equity firms could influence the Lifedrink Company board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Lifedrink Company is showing 3 warning signs in our investment analysis , and 2 of those are potentially serious...

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.