Individual investors own 27% of Pola Orbis Holdings Inc. (TSE:4927) shares but company controlled foundation control 36% of the company

Key Insights

• The considerable ownership by company controlled foundation in Pola Orbis Holdings indicates that they collectively have a greater say in management and business strategy
• 60% of the business is held by the top 2 shareholders
• Insider ownership in Pola Orbis Holdings is 27%

To get a sense of who is truly in control of Pola Orbis Holdings Inc. (TSE:4927), it is important to understand the ownership structure of the business. We can see that company controlled foundation own the lion's share in the company with 36% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And individual investors on the other hand have a 27% ownership in the company.

In the chart below, we zoom in on the different ownership groups of Pola Orbis Holdings.

See our latest analysis for Pola Orbis Holdings

What Does The Institutional Ownership Tell Us About Pola Orbis Holdings?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Pola Orbis Holdings. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Pola Orbis Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.

Pola Orbis Holdings is not owned by hedge funds. Pola Art Foundation, Endowment Arm is currently the company's largest shareholder with 36% of shares outstanding. With 24% and 2.9% of the shares outstanding respectively, Satoshi Suzuki and Baillie Gifford & Co. are the second and third largest shareholders. Satoshi Suzuki, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Pola Orbis Holdings

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 most recent data indicates that insiders own a reasonable proportion of Pola Orbis Holdings Inc.. It is very interesting to see that insiders have a meaningful JP¥77b stake in this JP¥290b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 27% stake in Pola Orbis Holdings. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Pola Orbis Holdings you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.