Retail investors who hold 51% of Rasa Industries, Ltd. (TSE:4022) gained 17%, institutions profited as well

Key Insights

• Significant control over Rasa Industries by retail investors implies that the general public has more power to influence management and governance-related decisions
• A total of 25 investors have a majority stake in the company with 49% ownership
• Institutional ownership in Rasa Industries is 42%

Our free stock report includes 1 warning sign investors should be aware of before investing in Rasa Industries. Read for free now.

A look at the shareholders of Rasa Industries, Ltd. (TSE:4022) can tell us which group is most powerful. The group holding the most number of shares in the company, around 51% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).

Retail investors gained the most after market cap touched JP¥25b last week, while institutions who own 42% also benefitted.

In the chart below, we zoom in on the different ownership groups of Rasa Industries.

See our latest analysis for Rasa Industries

What Does The Institutional Ownership Tell Us About Rasa Industries?

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.

We can see that Rasa Industries 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 Rasa Industries' earnings history below. Of course, the future is what really matters.

Rasa Industries is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Rasa Industries Ltd, Clients' Stock Ownership Association with 5.5% of shares outstanding. Sumitomo Mitsui DS Asset Management Company, Limited is the second largest shareholder owning 5.1% of common stock, and Sumitomo Mitsui Trust Asset Management Co., Ltd. holds about 3.7% of the company stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Rasa Industries

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.

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.

We can report that insiders do own shares in Rasa Industries, Ltd.. It has a market capitalization of just JP¥25b, and insiders have JP¥536m worth of shares, in their own names. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 51% stake in Rasa Industries, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Rasa Industries better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Rasa Industries .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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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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.