What Type Of Shareholders Make Up Hoshi Iryo-Sanki Co., Ltd.'s (TYO:7634) Share Registry?

A look at the shareholders of Hoshi Iryo-Sanki Co., Ltd. (TYO:7634) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

Hoshi Iryo-Sanki is a smaller company with a market capitalization of JP¥12b, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Hoshi Iryo-Sanki.

View our latest analysis for Hoshi Iryo-Sanki

What Does The Institutional Ownership Tell Us About Hoshi Iryo-Sanki?

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 Hoshi Iryo-Sanki. 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. 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 Hoshi Iryo-Sanki, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Hoshi Iryo-Sanki. Hoshiiryou-Sanki Co., Ltd. Client Stock Ownership Association is currently the largest shareholder, with 15% of shares outstanding. Masahiro Hoshi is the second largest shareholder owning 9.2% of common stock, and FMR LLC holds about 8.5% of the company stock. Masahiro Hoshi, who is the second-largest shareholder, also happens to hold the title of Senior Key Executive. Furthermore, CEO Yukio Hoshi is the owner of 5.4% of the company's shares.

We did some more digging and found that 9 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. 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 Hoshi Iryo-Sanki

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.

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 Hoshi Iryo-Sanki Co., Ltd.. Insiders own JP¥3.2b worth of shares in the JP¥12b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public holds a 45% stake in Hoshi Iryo-Sanki. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. For example, we've discovered 1 warning sign for Hoshi Iryo-Sanki that you should be aware of before investing here.

Of course this may not be the best stock to buy. So take a peek at this free 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.

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