FP Partner Inc. (TSE:7388) CEO Tsutomu Kuroki, the company's largest shareholder sees 5.7% reduction in holdings value

Key Insights

• FP Partner's significant insider ownership suggests inherent interests in company's expansion
• 61% of the company is held by a single shareholder (Tsutomu Kuroki)
• 19% of FP Partner is held by Institutions

A look at the shareholders of FP Partner Inc. (TSE:7388) can tell us which group is most powerful. The group holding the most number of shares in the company, around 63% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders as a group endured the highest losses after market cap fell by JP¥9.2b.

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

See our latest analysis for FP Partner

What Does The Institutional Ownership Tell Us About FP Partner?

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.

FP Partner already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 FP Partner's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in FP Partner. Looking at our data, we can see that the largest shareholder is the CEO Tsutomu Kuroki with 61% of shares outstanding. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. With 5.4% and 1.8% of the shares outstanding respectively, Capital Research and Management Company and Nikko Asset Management Co., Ltd. are the second and third largest shareholders.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of FP Partner

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. 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.

Our most recent data indicates that insiders own the majority of FP Partner Inc.. This means they can collectively make decisions for the company. That means insiders have a very meaningful JP¥96b stake in this JP¥152b business. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

The general public-- including retail investors -- own 18% stake in the company, and hence can't easily be ignored. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand FP Partner better, we need to consider many other factors. Take risks for example - FP Partner has 2 warning signs (and 1 which can't be ignored) 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.