Insiders own 33% of KOSÉ Corporation (TSE:4922) shares but individual investors control 37% of the company

Key Insights

• The considerable ownership by individual investors in KOSÉ indicates that they collectively have a greater say in management and business strategy
• A total of 7 investors have a majority stake in the company with 51% ownership
• Insiders own 33% of KOSÉ

Every investor in KOSÉ Corporation (TSE:4922) should be aware of the most powerful shareholder groups. With 37% stake, individual investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Individual insiders, on the other hand, account for 33% of the company's stockholders. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.

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

Check out our latest analysis for KOSÉ

What Does The Institutional Ownership Tell Us About KOSÉ?

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.

We can see that KOSÉ 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at KOSÉ's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in KOSÉ. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In KOSÉ's case, its Senior Key Executive, Takao Kobayashi, is the largest shareholder, holding 12% of shares outstanding. With 12% and 10.0% of the shares outstanding respectively, Masanori Kobayashi and The Cosmetology Research Foundation, Endowment Arm are the second and third largest shareholders. Interestingly, the second-largest shareholder, Masanori Kobayashi is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders. In addition, we found that Kazutoshi Kobayashi, the CEO has 2.4% of the shares allocated to their name.

On further inspection, we found that more than half the company's shares are owned by the top 7 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of KOSÉ

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in KOSÉ Corporation. It is very interesting to see that insiders have a meaningful JP¥124b stake in this JP¥377b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 37% ownership, the general public, mostly comprising of individual investors, have some degree of sway over KOSÉ. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - KOSÉ has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.

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.